Moonwell, the decentralized lending protocol, has put forward a governance proposal to formally wind down its operations on the Moonbeam network before the chain shuts down entirely on July 31, 2026. The proposal, designated MIP-M45, is currently live for on-chain voting.
What MIP-M45 actually does
The proposal lays out a structured plan to withdraw protocol reserves from several Moonbeam markets, including GLMR, xcDOT, USDC, FRAX, and ETH. Those funds would be transferred to a Foundation-designated wallet specifically aimed at settling any bad debts remaining in the system.
Beyond the reserve withdrawal, Moonwell plans to halt all new supply and borrowing activity on Moonbeam.
Existing users still have positions open on Moonbeam, and the message from Moonwell is pretty clear. Close your positions and withdraw your funds before the deadline, or risk losing access to those assets entirely once the chain goes offline.
