Balancer Proposes Protocol Winddown And Treasury Payout

Balancer, one of the earliest automated market makers in decentralized finance, is looking at a complete winddown. Former Balancer Labs CEO Marcus Hardt published a governance proposal outlining a planned shutdown, halting new business development, and returning the remaining treasury to holders. The proposal comes after months of declining protocol revenue and follows the dissolution of Balancer Labs earlier this year.

According to the timeline, contributor notices run through October, and paused pools shift to withdrawals only by October 30. Protocol fees will drop to zero, and infrastructure will scale back to a basic withdrawal interface supported by a dedicated winddown budget. Hardt noted that monthly expenses sit around $150,000, while protocol revenue brought in only $30,000 in August, making a continued operational push unsustainable.

If the vote passes, the remaining treasury, estimated at around $9 million, will be distributed directly to BAL holders on a pro rata basis. The first redemption round is scheduled to open in May 2027 after all existing veBAL locks expire, giving holders six months to burn their tokens and claim their share. Snapshot voting on the proposal runs from September 25 to 29, and traders are watching closely to see how the community responds to the planned exit.