Balancer Proposes Winding Down Protocol and Distributing Treasury to BAL Holders
Proposal to End Balancer Protocol and Distribute Treasury
Balancer, a decentralized finance (DeFi) platform, has proposed to wind down its operations and distribute its treasury funds to holders of its BAL token. The proposal aims to end the protocol's activities and return remaining assets to token holders.
The proposal was posted on Monday by Marcus Hardt, a treasury council member and former CEO of Balancer Labs, on Balancer's governance forum.
Key Points of the Proposal
- Marcus Hardt's proposal calls for an orderly wind-down with no new business development.
- The protocol will be phased out, and the decentralized autonomous organization (DAO) will be closed.
- The treasury holds at least $9 million worth of tokens to be distributed.
- BAL holders will need to burn their tokens to receive a share of the treasury.
- A snapshot vote is expected from September 25 to 29.
What Marcus Hardt's Proposal Says
In the proposal, Hardt stated that Balancer previously tried to restructure for profitability, but none of the initiatives converted into sustained revenue growth. He wrote, "Balancer tried," referring to past efforts that did not succeed.
Confirmed Details of the Wind-Down Plan
The proposal cancels a previously approved BAL buyback plan. Instead, remaining treasury assets will be distributed in kind and pro rata to BAL holders who burn their tokens.
If approved, contributor notice will run through October 31, and pools will transition to withdrawals-only on October 30.
The first redemption window will open at the end of May 2027 and run for six months. A second-round airdrop will follow within two months, covering unspent funds. A final sweep will distribute any remaining inflows six months later.
Why This Matters for BAL Holders
This proposal comes six months after Balancer Labs shut down, citing a November 3, 2025 exploit that drained around $128 million from various Balancer v2 pools across multiple chains. The wind-down will affect BAL token holders, who will receive treasury distributions through the proposed process.
Upcoming Vote and Timeline
Balancer clarified on X that discussion is open, and nothing changes in the protocol until the vote. The snapshot vote is scheduled from September 25 to 29, 2026.