Balancer, a decentralized exchange and automated market maker, has proposed winding down operations after its post-exploit restructuring failed to generate adequate revenue. The proposal, authored by Balancer Labs CEO Marcus Hardt and published on the governance forum on Monday, calls for an orderly protocol shutdown and distribution of its remaining treasury—valued at more than $9 million—to BAL tokenholders.
The move follows Balancer Labs' shutdown in March, when the company transitioned to a leaner operating structure. While the restructuring succeeded in reducing costs and delivering promised products, it fell short on revenue generation. According to data from DefiLlama, Balancer's monthly protocol revenue dropped to $371,000 in November from $1.13 million in October, following an exploit affecting composable stable pools on its v2 protocol. Revenue continued declining into 2026, reaching just $56,781 in August.
Hardt acknowledged that most protocol revenue still comes from v2, while v3 revenue has not grown sufficiently to replace it. "The product worked. It did not sell enough," he stated, adding that the November exploit continued to limit adoption despite v3's different architecture.
Proposed Wind-Down Timeline
Under the proposal, Balancer would begin a phased shutdown starting next month, with liquidity providers given until October 30 to exit. Pools that can be paused would move to withdrawal-only status, while others would continue operating with protocol fees set to zero where possible. From November 1, Balancer would maintain only minimal infrastructure to support withdrawals, with a small team managing the transition. The proposal allocates up to $400,000 for the wind-down process.
BAL holders would receive remaining treasury assets on a pro-rata basis through multiple distributions beginning in May 2027, when holders can burn their BAL tokens in exchange for shares. Additional distributions would return unspent wind-down funds and unclaimed assets, followed by a final sweep six months later.
Hardt argued that delaying the shutdown would deplete the treasury without altering the outcome. "Continuing on the current path spends the treasury to arrive at the same place later," he said. "That treasury belongs to BAL holders."
The proposal requires approval from BAL tokenholders, with a snapshot vote scheduled for September 25 to 29. A rejection would preserve Balancer's existing operating framework.
