Key facts
- Balancer has proposed winding down its protocol due to insufficient revenue.
- The proposal was authored by Balancer Labs CEO Marcus Hardt.
- A $128 million exploit in November is cited as a reason for continued low adoption.
- Balancer's v3 revenue has not grown to replace income from its legacy v2 protocol.
- The protocol's remaining treasury is valued at over $9 million.
- BAL token holders would receive the remaining treasury on a pro-rata basis.
Balancer, a decentralized exchange and automated market maker, has proposed winding down its protocol after a restructuring effort failed to generate sufficient revenue. The proposal, authored by Balancer Labs CEO Marcus Hardt, cites the lingering impact of a $128 million exploit in November on adoption and the inability of its v3 revenue to replace income from the legacy v2 protocol.
Hardt stated that while the restructuring succeeded in cutting costs and delivering promised products, revenue targets were not met. Data shows Balancer's monthly protocol revenue dropped significantly following the November exploit, continuing a downward trend into 2026. Hardt admitted he underestimated the exploit's effect on user traction.
The proposed wind-down involves a phased shutdown starting next month, with new business development ceasing and liquidity providers given until October 30 to exit. Pools unable to be paused will continue operating with zero protocol fees where possible. From November 1, only minimal infrastructure for withdrawals will be maintained, and the DAO will be wound down.
BAL holders would receive the protocol's remaining treasury, valued at over $9 million, on a pro-rata basis through distributions scheduled to begin in May 2027. Unspent wind-down funds and unclaimed assets will be distributed in subsequent phases. Hardt argued that delaying the wind-down would deplete the treasury without altering the outcome.
The proposal requires approval from BAL holders, with a snapshot vote scheduled from September 25 to 29. If rejected, the protocol's existing operating framework will remain in place.