Decentralized exchange protocol Balancer has published a proposal to sunset its operations following insufficient revenue generation, despite a restructuring in March.
Liquidity providers will have until the end of next month to withdraw their positions as the platform winds down through October.
Out of the remaining $9.4 million in the Balancer treasury, $400,000 will fund the wind-down while the rest goes to BAL holders in 2027 via a burn-and-claim process.
Popular automated market maker (AMM) Balancer has proposed to sunset its operations after failing to secure sufficient revenue, despite undergoing a strategic restructuring earlier in March.
According to the governance proposal published by Balancer Labs CEO Marcus Hardt, the decentralized finance protocol will gradually shut down its operations by October. Liquidity providers utilizing the platform have been given until the end of next month to withdraw their capital and positions safely.
The wind-down plan addresses the allocation of the protocol’s remaining capital. Of the $9.4 million left in the Balancer treasury, $400,000 has been earmarked to fund the operational wind-down process. The remaining treasury funds will be distributed to existing BAL token holders in 2027 through a structured burn-and-claim mechanism.
The decision underscores the severe economic pressures facing infrastructure-heavy DeFi protocols in the current market cycle. Despite iterating on its tokenomics and operational structure earlier this year, Balancer was unable to achieve sustainable fee generation to support ongoing development and maintenance.
Traders and liquidity providers interacting with Balancer pools are advised to monitor official governance channels and withdraw their assets well ahead of the upcoming deadlines to mitigate smart contract and operational risks as the wind-down progresses.
