Balancer Proposes Shutdown: At Least $9 Million Treasury Share for BAL Burners
Balancer has proposed to shut down the protocol and distribute its at least $9 million treasury to holders who burn their BAL tokens.
Balancer has published a governance proposal envisioning the phased termination of the DeFi protocol’s activities. If the proposal is accepted, new business development efforts will cease, the DAO’s operations will end, and the previously approved BAL buyback plan will be canceled.
Treasury assets are planned to be distributed proportionally among BAL holders who participate in the distribution by burning their tokens. The proposal states that the treasury holds at least $9 million worth of assets. BAL tokens held by the treasury will not be included in the distribution. However, a limited exception is envisioned for tetuBAL holders.
Proposed Timeline for Shutdown
The Snapshot vote for the proposal submitted by Balancer treasury council member and former Balancer Labs CEO Marcus Hardt is expected to take place between September 25-29. No changes will be made to the protocol until the voting is completed.
If the proposal is accepted, the notification process for contributors will continue until October 31. Pools are planned to be transitioned to withdrawal-only mode on October 30. The first redemption period will begin at the end of May 2027 and last for six months. During this period, users who burn their BAL tokens will be able to claim their shares from the treasury.
Following the first period, a second distribution is envisioned for the same addresses within two months. In this stage, unused closing funds, subsequent assets, and unclaimed shares will be distributed. With a final distribution to be made six months later, it is planned that any remaining inflows in the treasury will also be distributed.
The proposal comes approximately six months after Balancer Labs shut down its operations. The company explained that the background of this decision was the exploit that occurred on November 3, 2025, which led to a loss of approximately $128 million. Hardt also stated that some initiatives launched after the restructuring gained traction but failed to provide sustainable revenue growth.