Balancer Considers Shutdown After $130M Hack

Decentralized exchange Balancer is considering shutting down after experiencing significant losses following last year's $130 million hack. In a proposal posted to its governance forum, CEO Marcus Hardt suggests a 'phased sunset' of the protocol.

The proposal comes as Balancer's total value-locked (TVL) has plummeted from over $3 billion in November 2021 to just $58 million. Despite efforts to recover, the project has failed to achieve sustained revenue growth.

Under Hardt's proposal, Balancer's $9 million treasury would be distributed to BAL holders, pro-rata. The wind down would involve stripping back the DAO as much as possible and distributing funds to BAL holders.