Early today, Magic Internet Money DAO (aka Abracadabra Money) ratified a proposal seeking to create a grant budget within its protocol. The said grant will be sourced from a portion of the protocol’s revenues and will be used to fund community-based projects that contribute to improving the user experience on Abracadabra.
AIP #24, Implementing a Grant Budget for Community Contributions, was created in July by a member of the DAO known as 0xWicked. According to him, the approximately $20k grant (20,000 MIM tokens) will fund community members who wish to “contribute to the development and growth of the protocol.”
This framework will foster a more engaged and active community, incentivize innovative projects that benefit the protocol, and ensure a fair and transparent process for distributing grant funds. By providing financial support for community-led projects, Abracadabra can continue to grow and improve with the help of its dedicated community.
To access the grant, a community member will need to come up with an idea that will be beneficial to Abracadabra protocol. It could be anything from an analytics page to UI designs. Like most AIPs, the idea will be subjected to a pre-application interest to gauge the community’s interest before becoming formalized. Subsequently, the grant application will be reviewed and passed to a Snapshot voting round.
Meanwhile, Snapshot data shows that the proposal received only 9 votes, with unanimous support from all the participants. However, the two largest wallets held a whopping 2.2 billion and 1.4 billion SPELL tokens, respectively, suggesting that governance within the group is controlled by a few whale players.
Abracadabra Money is a decentralized finance (DeFi) lending platform that allows users to unlock the value of their yield-bearing assets. By collateralizing these assets, users can borrow stablecoins, such as Magic Internet Money (MIM), which can then be used to invest, trade, or simply spend as needed.
Abracadabra Money is unique in that it allows users to collateralize interest-bearing tokens (ibTKNs), such as yvWETH, yvYFI, and xSUSHI. These tokens represent liquidity provider (LP) shares in various yield-generating protocols, and they provide users with a steady stream of passive income.