Balancer Co-Founder Proposes Gradual Shutdown Due to Growth and Funding Challenges

Balancer co-founder Marcus Hardt has proposed a gradual shutdown of the decentralized finance (DeFi) protocol, citing insufficient growth and lack of viable funding and revenue paths. Once valued at over $7 billion in fully diluted valuation, Balancer is now seeking to wind down operations. Hardt posted his proposal on the governance forum on September 14, ahead of an upcoming governance vote.

In the proposal, Hardt stated that Balancer v3 has not achieved sufficient growth to replace v2 revenue streams and that no clear funding pathways have emerged. If approved, certain liquidity pools will transition to withdrawal-only mode starting October 30, 2026, while non-removable pools will see protocol fees reduced to zero where contractually possible. After October 31, new development will cease, with only a small team remaining for asset liquidation and treasury distribution. The DAO treasury is estimated at $9 million (approximately 1.23 billion won), with proceeds to be distributed proportionally to BAL burners. Initial exchange points will open in late May 2027, with final liquidation expected by July 2028.

Snapshot voting on the proposal will run from September 25 to 29.