BAL token holders have voted to wind down the Balancer protocol, marking a significant shift in the project’s operations.
On September 29, BAL token holders voted overwhelmingly for the gradual shutdown of the Balancer protocol, with 99.2% of participants supporting BIP-928, equating to roughly 17.2 million BAL tokens.
BAL holders approved an orderly wind-down.
BIP-928 passed while BIP-929, which proposed a fork, did not. The Balancer pools will remain operational until October 30, during which withdrawals will continue to be permitted.
— Balancer (@Balancer) September 29, 2026
Following October 30, pools eligible for pausing will shift to a withdrawal-only mode. The rewards program aimed at identifying vulnerabilities will also conclude on this date.
Partners have until October 16 to request an extension for certain v3 pools, which can run until November 30, coinciding with the anticipated suspension of the v3 Vault.
Despite the winding down of operations, users will maintain access to withdraw their assets due to the non-custodial nature of Balancer's contracts.
The first phase of treasury distribution is slated for late May 2027, allowing holders to burn BAL tokens in exchange for a share of the remaining assets. The treasury was valued at a minimum of $9 million at the time of the proposal, with estimated payoffs around $0.16 per BAL, subject to final audits before distribution.
The closure decision was attributed to unsustainable revenue, with Balancer's revenue plummeting from $97,000 in June to just $30,000 in August. While the treasury remains intact, continued expenses could not be justified without a clear recovery path.
This decision follows Balancer Labs' earlier announcement in March regarding the protocol's winding down and is compounded by financial strains from a hack in November 2025 that resulted in losses of approximately $128 million.
Abracadabra Seeks to Liquidate Lending Protocol
In a related development, the Abracadabra ecosystem is considering a proposal to gradually shut down its lending protocol and liquidate the Magic Internet Money (MIM) stablecoin, with voting set to end on September 30.
The proposal stems from a significant collateral deficit, with MIM liabilities estimated at $21 million and available collateral around $1.2 million, leaving less than $0.04 in collateral for every $1 MIM token.
If approved, assets will be liquidated and converted to ETH, with proceeds distributed to MIM holders, potentially offering about $0.04 per token. Abracadabra has faced financial challenges, with notable losses from attacks in January 2024 and March 2025 totaling over $20 million.
Earlier in September, other crypto projects, including Harmony and Router Protocol, also announced their closures, highlighting a broader trend in the sector.
