Balancer proposes protocol shutdown and treasury distribution to BAL holders

Balancer CEO Marcus Hardt has proposed winding down the DeFi protocol through a phased sunset and distributing the DAO treasury to BAL holders after funding the remaining costs of the closure.

The plan, issued on Sept. 14, would end new business development, move the protocol toward a minimal withdrawal infrastructure and close the DAO where legally and practically possible.

The treasury currently stands at at least $9 million based on current token prices, although the final amount would be measured and audited when the first distribution round opens.

The proposal calls for pausable pools to move to withdrawals only on Oct. 30, 2026, with recovery mode enabled where required to keep withdrawals available. Contributor notice ends Oct. 31, followed by a reduced transition operation funded by $150,000 through May 2027, $30,000 through the final sweep and a $220,000 reserve if needed.

The plan would also cancel the BIP-919 buyback and release the remaining BIP-687 bug bounty earmark once its coverage and outstanding reports are resolved.

BAL holders would begin redeeming their tokens at the end of May 2027, with the first claim window lasting through the end of November.

The treasury would be distributed in kind based on circulating BAL, while a second round would send remaining funds to the addresses that redeemed in the first round in proportion to their redemptions. A final sweep would distribute any additional funds six months later.

Hardt said the decision follows a review under BIP-918 after the profitability plan approved in April failed to produce sustained revenue growth, with v2 still accounting for most revenue and v3 not growing enough to replace it.