Balancer Co-founder Announces Closure of Balancer Labs and Transition to DAO Architecture

CycleProphet · 2026-03-24T01:40:59+00:00

Balancer Protocol Co-Founder Announces Closure of Balancer Labs, Citing Burden on Protocol Development and Legal Risks. Core Team Will Merge into Balancer OpCo, Protocol Will Continue Operating, and Support Token Economics Restructuring Initiative Aimed at Alleviating Burden and Attracting Liquidity.

CycleProphet

2026-03-24 01:40:59

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Deep Tide TechFlow News, March 24 — The co-founder of the Balancer protocol, Fernando Martinelli, announced that Balancer Labs (BLabs) will officially shut down. He stated that BLabs, as a corporate entity, has become a burden to the protocol’s development, and due to ongoing legal risks following the v2 vulnerability incident on November 3, 2025, along with a lack of sustainable revenue sources, the decision to close is now unavoidable.

Core team members of BLabs will be integrated into Balancer OpCo through governance voting, with proposals to be submitted by Marcus and Danko.

Fernando also mentioned that the protocol still holds practical operational value and will not cease all activities. He explicitly supports the current proposed tokenomics restructuring plan, which includes: reducing BAL emissions to zero, shutting down the veBAL mechanism, directing 100% of protocol fees into the DAO treasury, lowering the v3 protocol split to 25% to attract organic liquidity, and providing a buyback exit channel for BAL holders.

BAL1.57%

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