Balancer Proposal to Wind Down Protocol, $9 Million Allocated to BAL Holders

The Balancer community has proposed an orderly wind-down of the protocol, planning to cease new business development, phase out the protocol, and close the DAO as feasible. The treasury will be distributed in kind to BAL holders, with a current valuation of at least $9 million. The proposal cancels BIP-919 buyback and replaces it with BIP-687. Contributors have until October 31, 2026, to notify, and the fund pool will become withdrawable only on October 30. The first round of distribution will begin at the end of May 2027, where holders must burn BAL to receive their share of the treasury; the second round will be an airdrop to the redemption addresses from the first round, conducted within two months after the deadline; final liquidation will occur six months later. Snapshot voting is scheduled from September 25 to 29. The proposal notes that despite the launch of v3, protocol revenue still primarily comes from v2, with v3 failing to bridge the gap, key personnel losses, and growth not meeting expectations. A vulnerability attack in November 2025 affected the v2 fund pool, increasing customer acquisition difficulties. The proposal argues that continuing on the current path will only deplete the treasury, and remaining funds should be allocated to holders while still substantial.

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