Balancer Proposes Winding Down DeFi Protocol and Distributing $9M to BAL Holders

Balancer has proposed winding down its decentralized finance protocol and distributing at least $9 million in treasury assets to holders of its native token, BAL. This decision comes six months after Balancer Labs closed.

The proposal, published by Marcus Hardt on September 14, calls for halting all new business activity, sunsetting the protocol in phases, and closing the decentralized autonomous organization to the extent possible under law.

Under the plan, a previously approved BAL buyback program would be canceled. Remaining treasury assets would be distributed proportionally to BAL holders who choose to burn their tokens. The treasury holds at least $9 million in tokens.

The wind-down process would begin quickly if token holders approve the proposal in a snapshot vote scheduled for September 25 to September 29. A phased exit is planned, with contributor notice periods running through October 31 and all pools shifting to withdrawals-only mode on October 30.