Spell Token
Crypto Overview
Project Overview
Spell Token (SPELL) is the governance token for Abracadabra.money, a lending platform launched in 2021. The protocol allows users to deposit interest-bearing tokens as collateral to borrow a stablecoin called Magic Internet Money (MIM).
Intended Utility
SPELL's primary purpose is to serve as a governance token for the Abracadabra ecosystem, allowing holders to vote on protocol parameters and changes. Additionally, users can stake SPELL tokens to earn protocol fees and rewards.
Actual Utility Assessment
The token is actively used for governance, with regular proposals and voting activity occurring on-chain. The staking mechanism (called sSpell) has significant participation, with approximately 44% of the total supply currently staked. The protocol generates revenue through lending fees, which are distributed to staked SPELL holders.
Business Model Analysis
The core business model revolves around lending and borrowing, with users depositing interest-bearing tokens as collateral. The platform charges fees for borrowing, which presents concerns from an Islamic finance perspective due to the involvement of interest-based mechanisms.
Token Distribution and Founder Analysis
Initial token distribution allocated 30% to the team and advisors with a 1-year vesting period, 20% to the treasury, and 50% to the community through various mechanisms. The project's founder, known as 'Squirrel', has maintained active involvement in development and governance.
Development Activity
The protocol shows consistent development activity on GitHub, with regular updates and improvements. The team has demonstrated commitment to building and maintaining the platform rather than focusing solely on marketing.
Crypto Impact
To assign a comfort level investing in Spell Token from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Spell Token.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.