Balancer proposes orderly wind-down after revenue decline
Balancer shutdown proposal outlines a phased wind-down after weak revenue and exploit fallout If approved, tokenholders could receive treasury payouts as the DAO exits next month
Balancer has proposed an orderly shutdown of its protocol after restructuring efforts failed to restore enough revenue. The decentralized exchange and automated market maker said the plan follows months of weaker adoption after a November exploit affected legacy v2 pools.
According to the proposal published on Balancer’s governance forum, the protocol would phase out operations next month if tokenholders approve the move. New business development would stop, liquidity providers would be given time to exit, and parts of the protocol would shift to withdrawalonly mode where possible.
Balancer said its treasury, worth more than $9 million, would be distributed to BAL tokenholders in stages. A governance vote is scheduled for Sept. 25 to 29, and if the proposal passes, the DAO would be wound down and only minimal infrastructure would remain to support withdrawals.