Balancer Proposes Protocol Shutdown After Revenue Fails to Recover From $128M Exploit
TLDR
- Balancer has proposed winding down its DeFi protocol after restructuring failed to generate enough revenue
- CEO Marcus Hardt says the $128 million November 2025 exploit continued to hurt adoption even after a rebuild
- Monthly revenue dropped from $1.13 million in October 2025 to just $56,781 by August 2026
- The remaining treasury of over $9 million would be distributed to BAL token holders
- A governance vote is scheduled for September 25 to 29 to approve the wind-down
Balancer, a decentralized exchange and automated market maker, has proposed winding down its protocol after a post-exploit restructuring failed to bring in enough revenue to keep the project viable.
A proposal to wind down Balancer and distribute the treasury to BAL holders is live on the forum, authored by Marcus Hardt. Discussion is open; a Snapshot vote is expected to happen from 25 to 29 September.
Nothing changes today: pools and withdrawals work as they do now. Anyโฆ
- Balancer (@Balancer) September 14, 2026
The proposal was written by Balancer Labs CEO Marcus Hardt and posted to the Balancer governance forum on Monday. It calls for an orderly shutdown and the distribution of more than $9 million in treasury funds to BAL token holders.
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