Balancer proposes protocol wind-down after revenue recovery stalls

Balancer Labs CEO Marcus Hardt introduced the governance plan this week, citing a disconnect between the protocol’s product quality and its market performance. While a leaner operating structure implemented earlier this year successfully reduced costs, the protocol failed to generate sufficient revenue to justify its continued existence. Monthly revenue plummeted from $1.13 million in October 2025 to just $56,781 by August 2026.

Hardt attributed the ongoing stagnation to the lingering shadow of the November 2025 exploit, which drained $128 million from v2 Composable Stable Pools. Although the newer v3 architecture remained untouched by the attack, the reputational damage hindered user adoption and liquidity growth. The proposed wind-down would transition the platform into a withdrawal-only mode by November 1, allowing users to exit their positions before the DAO dissolves. BAL holders are set to vote on the proposal between September 25 and September 29. If approved, the remaining treasury will be distributed to token holders in phases starting in May 2027, with participants required to burn their BAL holdings to claim their pro-rata share.