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

DeepFlowTech · 2026-03-24T00:24:54+00:00

Balancer protocol co-founder announces closure of Balancer Labs due to it becoming a protocol burden and facing legal risks, though the protocol retains operational value with annualized revenue exceeding $1 million. The core team will merge into Balancer OpCo, and a tokenomics restructuring plan is being formulated.

DeepFlowTech

2026-03-24 00:24:54

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Deep Tide TechFlow News, on March 24, Balancer Protocol co-founder 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 from 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 has practical operational value—over the past three months, the annualized total fee income exceeded $1 million—so it will not cease all operations. He explicitly supports the current proposed tokenomics restructuring plan, which includes: reducing BAL emissions to zero, shutting down the veBAL mechanism, allocating 100% of protocol fees to the DAO treasury, lowering the v3 protocol split to 25% to attract organic liquidity, and providing a buyback exit channel for BAL holders.

BAL-2,1%

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