Balancer Proposes Shutdown Due to Failing Revenue After November Exploit

Balancer Labs has proposed shutting down its decentralized exchange protocol due to failing revenue after a major exploit in November 2025. The protocol's revenue fell from $1.13 million in October 2025 to $371,000 in November following the attack and reached $56,781 in August. According to Balancer Labs CEO Marcus Hardt, the protocol delivered the products promised under a leaner structure adopted earlier this year but did not bring in enough revenue to sustain operations.

Hardt argued that keeping the existing structure running would continue consuming treasury funds without fixing the revenue problem that emerged after the restructuring. The proposal would start winding down Balancer next month, beginning with an end to new business development and a phased shutdown of the protocol.

Liquidity providers would have until October 30 to prepare their exits before Balancer moves to minimal withdrawal infrastructure from November 1. BAL holders are scheduled to vote on the wind-down proposal from September 25 to September 29, with the remaining treasury assets currently valued at more than $9 million to be distributed to them through a phased process.

Hardt said that he had 'underestimated how much the exploit would continue to limit adoption.' The November attack allowed attackers to manipulate pool balances during token swaps and extract assets including WETH, osETH, and wstETH. Some of the money was eventually recovered, but the protocol's revenue failed to recover enough to justify continuing.