Balancer Proposes Shutdown and Treasury Distribution Amid Revenue Struggles

Balancer has proposed shutting down its DeFi protocol and distributing its treasury among BAL token holders. The proposal, presented by Marcus Hardt, former CEO of Balancer Labs, would cancel the token buyback program and distribute at least $9 million in tokens to those who burn their BAL.

The move comes six months after Balancer Labs ceased operations following an exploit that resulted in the loss of around $128 million from various pools across multiple chains. Despite a restructuring plan aimed at profitability, the protocol has failed to achieve sustained revenue growth.

If approved, the shutdown would occur with two redemption rounds: one via an open window and another via an airdrop. A final sweep six months later would distribute any remaining revenue.