Balancer Weighs Shutdown Amid Ongoing Revenue Struggles

Balancer, a decentralized exchange, is considering shutting down due to ongoing revenue struggles. According to CEO Marcus Hardt, the protocol's revenue has been under pressure since a major exploit in November 2025, which involved composable stable pools on Balancer's older v2 system.

The incident resulted in estimated losses of $128 million and had a significant reputational impact on the broader Balancer brand. Despite attempts to restructure and operate with a leaner model, revenue failed to recover. In August 2026, monthly protocol revenue fell to just $56,781, down from around $1.13 million in October 2025.

With revenue still under pressure, Hardt argues that staying operational could leave token holders with less value in the end. The proposed shutdown would involve a staged process, including ending new business development and allowing liquidity providers to exit by October 30. Pools without pause functionality would continue operating but with reduced protocol fees.

Once the wind-down is complete, the remaining treasury assets, valued at over $9 million, could be distributed to BAL holders based on their proportional ownership. The first distribution is scheduled for May 2027, followed by a second round and a final sweep six months later.