Balancer Labs will gradually shut down, with the protocol transitioning to a DAO and foundation operation model.

Balancer co-founder Fernando Martinelli announced that due to a lack of revenue sources and the legal risks arising from the v2 exploit event in November 2025, Balancer Labs will gradually shut down. The core team members plan to be received by Balancer OpCo, and related proposals will be submitted to governance for a vote. Martinelli stated that the protocol no longer needs a traditional corporate entity for support; in the future, it will operate through the DAO, foundation, and service provider models. Although the protocol generated annualized total fees exceeding $1 million in the past three months, the economic model is unsustainable and the cost structure is too heavy. Martinelli supports the tokenomics restructuring plan and operational proposals, including stopping BAL emissions, ending the veBAL mechanism, routing all protocol fees directly to the DAO treasury, performing BAL buybacks to provide liquidity exits, and focusing on the core product line. Martinelli will no longer maintain a formal relationship with the protocol but is willing to provide support as an advisor.