WILL THE BALANCER PROTOCOL STOP OPERATING?

Fernando Martinelli – the co-founder of the Balancer protocol – has officially announced the decision to gradually wind down the operations of Balancer Labs.

- Once one of the leading Defi protocols, it now faces cessation of operations due to lingering legal risks following the major hack of 128 million USD that occurred in November 2025. Specifically:

1. Balancer Labs (the development company) will gradually wind down.

- The main reason is the prolonged legal risks stemming from the major hack in November 2025 (losing over 128 million USD), and the company can no longer earn enough money to sustain itself.

- The Balancer protocol will still operate but will transition to a DAO + Foundation model (fully managed by the community).

2. Major changes soon to be voted on (BIP)

- Halting the issuance of new BAL (stopping dilution).

- All transaction fees will be redirected to the DAO treasury (increasing income for the community).

- Buy back and burn $BAL to support the price.

- Reduce the team size, significantly cutting costs (only 12 people remaining, budget reduced by 34%).

=> The DAO will save money, runway extended ~9 years, the protocol will focus on good products (reCLAMM, stable pools...).

3. Summary

- Currently, the Balancer protocol is still operational with a total TVL of approximately 158 million USD, generating over 1 million USD in transaction fees annually.

- The Balancer protocol will not cease operations or shut down completely. Instead, it will shift to a new management model controlled by the community through DAO + Foundation and an independent service provider.

- What are your thoughts? Has Balancer reached its "end" yet?