Balancer Proposes Shutdown as Post-Exploit Revenue Falls Short

Balancer has proposed shutting down its decentralized exchange protocol after its post-exploit restructuring failed to generate enough revenue. The remaining treasury, currently worth more than $9 million, would be distributed to BAL holders through a phased process.

The proposal was laid out by Balancer Labs CEO Marcus Hardt in a governance proposal published Monday, saying the protocol delivered the products promised under a leaner structure adopted earlier this year but did not bring in enough revenue to sustain operations.

Revenues dropped from $1.13 million in October 2025 to $371,000 in November following the $128 million exploit and continued falling throughout 2026, reaching $56,781 in August.

Liquidity providers would have until Oct. 30 to prepare their exits before Balancer moves to minimal withdrawal infrastructure from Nov. 1.