This RFC proposes that the Abracadabra DAO formally recognize the ~326 million SPELL tokens stranded on Avalanche due to the Multichain.xyz bridge exploit, and initiate a remediation process for affected holders. We suggest the DAO consider a 1:1 replacement, a Merkle-claim redemption system, or an equivalent token burn to preserve trust, supply integrity, and user value.
Estimated tokens affected: ~326,000,000 SPELL (based on on-chain data)
Main Objective
High-Level Overview
The Multichain.xyz exploit has rendered cross-chain SPELL on Avalanche permanently inaccessible. Many community members, including the proposer, lost access to their SPELL tokens, which are now effectively frozen in a defunct contract.
This RFC aims to begin discussion around a fair, secure, and technically feasible response from the DAO, such as:
A 1:1 replacement of affected tokens via claim
A Merkle-claim contract for users to redeem a replacement SPELL on Ethereum
A burn or marking system to neutralize stranded SPELL in Avalanche supply
An official DAO acknowledgment of the incident and its effect on tokenomics
Low-Level Options to Discuss
Use a Merkle tree-based claim system to let users redeem SPELL on Ethereum
Consider a burn (or marking as invalid) of the frozen tokens to prevent supply distortion
Alternatively, mint new SPELL to compensate losses — transparently, fairly, and with DAO oversight
Motivation and Risk Analysis
Motivation:
Restore value to loyal SPELL holders affected through no fault of their own
Strengthen trust in Abracadabra’s governance and token integrity
Prevent long-term inflated supply metrics by addressing these frozen assets
Risks:
Implementation complexity (Merkle system)
Potential for fraud (mitigated by chain-level data)
I’m in favor of this but I think it should be updated to include all impacted chains like Fantom.
Also, there’s a few details of the post that should be fixed such as the contract address: 0xCE1bFFBD5374Dac86a2893119683F4911a2F7814 and the amount of SPELL on Avalanche: 1,515,746,055.35
This needs to include Fantom as well, particularly as Fantom SPELL holders have been cut off from mSPELL rewards permanently and are now at a greater disadvantage even to other multi chain affected chains. The DAO can’t ignore that multichain was the official bridge for Abracadabra. If receipt tokens are burnt on claim on Avax/FTM etc. there is minimal inflation risk (which could be offset by a burn on ETH anyway). It’s fair to say that if the locked tokens were accessible by an exploiter they would have been accessed and dumped by now.
Sure, no problem. So, should I remove the one at post and replace it with 0xCE1bFFBD5374Dac86a2893119683F4911a2F7814?
Not sure what to write about Fantom or how to find the contact address affected. Can u write a small paragraph, whatever feels right, so I can edit and include it in the post?
Hey Admin, pls edit my thread above using the post below.. For some reason, I cannot edit my thread.
[RFC] - Addressing the Loss of SPELL and sSPELL Tokens Across Multiple Chains Due to Multichain Exploit
Summary/Scope: This RFC proposes that the Abracadabra DAO formally recognize the SPELL and sSPELL tokens stranded across multiple chains due to the Multichain.xyz bridge exploit, and initiate a remediation process for affected holders. We suggest the DAO consider a 1:1 replacement, a Merkle-claim redemption system, or an equivalent token burn to preserve trust, supply integrity, and user value.
High-Level Overview The Multichain.xyz exploit has rendered cross-chain SPELL and sSPELL tokens permanently inaccessible across multiple chains including Avalanche, Fantom, BSC, Arbitrum, and Optimism. Many community members lost access to their tokens, which are now effectively frozen in defunct contracts.
This RFC aims to begin discussion around a fair, secure, and technically feasible response from the DAO, such as:
A 1:1 replacement of affected tokens via claim
A Merkle-claim contract for users to redeem replacement SPELL/sSPELL on Ethereum
A burn or marking system to neutralize stranded tokens across all affected chains
An official DAO acknowledgment of the incident and its effect on tokenomics
Low-Level Options to Discuss
Use a Merkle tree-based claim system to let users redeem SPELL/sSPELL on Ethereum
Consider a burn (or marking as invalid) of the frozen tokens to prevent supply distortion
Alternatively, mint new tokens to compensate losses — transparently, fairly, and with DAO oversight
Address both SPELL and sSPELL holders across all affected chains
Motivation and Risk Analysis
Motivation:
Restore value to loyal SPELL and sSPELL holders affected through no fault of their own
Strengthen trust in Abracadabra’s governance and token integrity
Prevent long-term inflated supply metrics by addressing these frozen assets across multiple chains
Ensure fair treatment for both SPELL and sSPELL holders
Risks:
Implementation complexity (Merkle system across multiple chains and token types)
Potential for fraud (mitigated by chain-level data)
Setting a precedent for future recovery demands
Minor supply inflation if no burn is performed
Additional complexity due to multiple token types (SPELL vs sSPELL)
Contracts / Technical Requirements
Affected token contracts listed above across 5 chains
Suggested tools:
Merkle claim distributor (similar to Uniswap, Gitcoin)
Deployment of claim contract on Ethereum
Multi-chain snapshot capability to capture balances across all affected chains
Consideration for sSPELL conversion ratios if applicable