Abracadabra Money ($SPELL), the brainchild of Daniele Sestagelli, is pursuing a model to drastically reduce emissions with the ultimate goal of being a Zero-Emission protocol.
$SPELL had a monster year in 2021, coming out of nowhere to take the DeFi scene by storm. The Lending platform offers cross-chain solutions for using CDP’s (collateralized debt positions) to mint and borrow $MIM (Magic Internet Money), an algorithmic stable coin.
Spell Origin
Founder Dani Sestagelli has emerged as a cult-like figure in the crypto world; DeFi specifically. By taking a stance of eschewing TradFi structures and VC’s he has captured the attention of retail investors and crypto DeGen’s, affectionately referred to as “Frog Nation”.
The protocol continues to innovate and offer low/no-fee strategies for minting $MIM, including the first zero-interest lending market using WETH (wrapped Ethereum), making it a continued favorite for the retail and DeGen crowd.
When $SPELL first launched it used the high-emission structure to attract as many new users/adopters as possible and to get as much participation from DeFi farmers depositing collateral in order to receive $SPELL rewards and also use leveraged positions, if desired. A significant portion of the emissions were also used to reward $SPELL stakers.
Lowering and Eliminating Emissions
The outcome has been nothing short of staggering. Since launching in mid-2021, $SPELL token price has gone from $.0005 to an all time high of $0.034. Currently trading at $0.021, with a market cap of $1.7 billion the project continues to find support and growth, which has led to the move of reducing token emissions.
What does this mean?
A recent Medium article laid out the upcoming vision and changes proposed.
“In the last three months the protocol reduced its weekly SPELL emissions from 1,078,505,445 SPELL to 332,308,031 SPELL. An overall reduction of 71.4%. These tokens have not been minted, and can therefore be used for other reasons…
The ultimate goal is to maintain this trend by changing the fundamentals of attracting liquidity through SPELL emissions. The team aims to achieve zero emissions by Q1 2022.”
Medium
The ability to reduce emissions to zero and remain profitable is a very bullish sign for the protocol.
On January 3rd, 2021 5.25 billion $SPELL were been burned, which brought the new total supply to 196B. (LINK)
Having been listed on FTX Exchange, Binance and Coinbase (to name a few), the next steps are to natively launch on non-EVM blockchains like Solana, Cosmos and Terra.
