Balancer Labs proposes winding down operations and redistributing $9 million among BAL holders after a significant hack and loss.
Marcus Hardt, co-founder of Balancer Labs, has outlined a proposal on the Balancer forum aimed at dissolving the DeFi protocol and distributing around $9 million to BAL token holders. The voting process on Snapshot is scheduled from September 25 to September 29.
In a notable shift, the proposal abandons a previously approved buyback plan for BAL tokens. Instead, Hardt suggests that the remaining treasury assets be distributed to token holders based on their holdings, contingent upon the burning of their BAL tokens.
This development follows the closure of Balancer Labs six months ago after a significant hack in November 2025, which resulted in a loss of $128 million. Hardt noted that earlier restructuring efforts, including cost reductions and the launch of version 3, did not lead to sustainable profitability for Balancer.
The voting options include:
- In Favor: Cancel the planned token buyback and distribute the treasury funds proportionally to investors in exchange for burning their BAL tokens. Approximately $400,000 will be allocated for the wind-down process.
- Against: Continue operations, although the authors warn that without increased fee revenue, the treasury could be depleted, risking future losses for investors.
If the proposal is passed, the timeline will include:
- October 30, 2026: Transition liquidity pools to "withdrawal-only" mode, ceasing new product development.
- May 2027: Open the first six-month window for BAL token burning and treasury payouts.
- January 2028: Conduct a second phase for distributing any unclaimed funds.
The final distribution amount will be fixed and audited at the time the first round opens, with certain exclusions for BAL tokens and assets convertible to them, except for those held by tetuBAL holders.
As per CoinGecko, the price of BAL has dropped over 99% from its peak of $72 in 2021, now standing at just $0.11, with its market capitalization shrinking from $783 million to about $7.8 million. Balancer Labs had announced its closure earlier in March.
