Balancer Faces Shutdown After $128M Hack Devastates Revenue
Balancer, a decentralized finance (DeFi) protocol, is facing potential shutdown due to a significant decline in revenue following a $128 million hack in November 2025. The protocol's monthly revenue plummeted by approximately 95% after the incident.
The proposed shutdown plan, authored by Marcus Hardt, would involve winding down operations and distributing the remaining treasury assets to BAL holders. If approved through a Snapshot vote scheduled for September 25-29, Balancer's DAO treasury worth at least $9 million could be distributed to token holders.
The decline in revenue has been attributed to the failure of v3 to generate sufficient income to replace the older infrastructure. Despite efforts to restructure and become leaner, the protocol continues to struggle with expenses exceeding $150,000 per month while revenue remains below $60,000 in August.