Balancer Unveils $9M Orderly Liquidation Plan, Setting Precedent for DeFi Protocols
Balancer, once a pioneering DeFi protocol with a TVL of up to $3 billion, is nearing its end. In an orderly liquidation spanning nearly two years, the protocol will distribute at least $9 million in non-BAL assets from its DAO treasury proportionally to holders who burn their BAL tokens.
The proposal, submitted by Marcus Hardt on September 15, recommends terminating all daily operations and R&D activities. The plan stipulates that only external hard assets will be distributed, with BAL tokens held by the treasury itself being stripped out.
This approach sets an accounting precedent for DAO treasury liquidity management and solvency accounting, dispelling the 'treasury illusion' where protocols' book values appear massive but are largely composed of native tokens.