Balancer Labs to Shut Down as Protocol Goes Community-led - Crypto Economy

Balancer co-founder Fernando Martinelli said that Balancer Labs will wind down, arguing the corporate entity has become a liability after the Nov. 3, 2025 exploit and is no longer sustainable without revenue. He said the protocol should now move forward through the DAO, the Foundation and the service-provider model.

Martinelli said Balancer still generates real revenue, with more than $1 million in annualized fees over the past three months, but its economics no longer work under the current structure. He backed a lean continuation plan built around cutting BAL emissions to zero, winding down veBAL, routing 100% of protocol fees to the DAO treasury, reducing operating costs and offering BAL holders a fair-price buyback. Essential Balancer Labs team members are expected to move into Balancer OpCo, pending a governance vote.

The next phase now depends on governance and execution. Martinelli said the formal proposals will be published separately by the core team, and he described the next 12 months as crucial for proving whether Balancer can restore sustainability after its hardest period since launch.

Source: Balancer Forum post by Fernando Martinelli.

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