Balancer eyes wind-down after restructuring fails to revive revenue
Balancer cut costs and shipped new products after restructuring, but Marcus Hardt says v3 failed to replace legacy revenue as November’s $128 million exploit continued to weigh on adoption.
Balancer, a decentralized exchange and automated market maker, is considering winding down its protocol after a restructuring attempt failed to revive revenue, reports Marcus Hardt, Balancer Labs CEO. In November, an exploit of $128 million continued to adversely affect adoption, despite Balancer cutting costs and introducing new products post-restructuring.
The protocol has proposed shutting down the protocol, distributing its remaining treasury, currently worth more than $9 million, to BAL tokenholders. Balancer's revenue has fallen significantly since the exploit, with only $371,000 in November, down from $1.13 million in October. Hardt acknowledged that the November exploit severely impacted adoption, as v3, a new architecture, failed to replace the revenue from v2.
The proposal outlines a phased shutdown, with the DAO winding down and BAL holders receiving the remaining treasury on a pro-rata basis, starting from May 2027. BAL holders will have a snapshot vote scheduled from Sept. 25 to 29 to approve the proposal.
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