Balancer Proposes Shutting Down and Returning Treasury to Token Holders
Balancer, a decentralized finance (DeFi) protocol, has proposed shutting down and returning its $9 million treasury to token holders. The proposal, posted on Monday, would allow holders to burn their BAL tokens for a pro-rata share of the treasury starting May 2027.
The move comes as part of a broader effort by Balancer's management to wind down the protocol's operations and distribute its remaining assets to token holders. According to the proposal, the treasury is currently valued at $9 million, which is more than the market capitalization of BAL itself ($7.71 million).
The proposal also supersedes a previous plan to buy back BAL tokens using treasury funds, which was put in place by BIP-919. Instead, token holders would receive a share of the treasury's assets, excluding BAL itself.
Contributors who want to continue working on Balancer's infrastructure can explore an alternative proposal to keep the protocol running under a new name.