The Balancer protocol faces a governance proposal to wind down operations following a failed turnaround plan. The initiative, introduced by Treasury Council member Marcus Hardt, suggests transitioning eligible pools to a withdrawals-only mode starting October 30. This decision follows a decline in monthly revenue, which dropped from over $200,000 in April to under $60,000 in August.
The protocol's financial challenges were exacerbated by a November exploit that drained $128 million from v2 pools. Despite the launch of v3 and the AutoRange Pools, revenue failed to recover. The proposal notes that monthly operating costs currently reach approximately $150,000, exceeding the protocol's income and depleting the treasury.
Under the proposed plan, contributor contracts will conclude on October 31, and a transition team will manage the wind-down with a budget capped at $400,000. The DAO treasury, valued at at least $9 million, would be distributed to token holders. The process includes a token burn and pro rata distribution starting in May 2027, with final payouts scheduled through 2028.
The proposal also calls for the cancellation of the BAL buyback program previously approved under BIP-919. Snapshot voting on the measure is scheduled from September 25 to September 29, requiring a quorum of 5 million BAL tokens. Separately, contributors are exploring a potential plan to maintain the infrastructure under a different brand.
