Balancer co-founder announces closure of Balancer Labs, protocol to continue operating under DAO and foundation architecture

Odaily Planet Daily reports that Balancer co-founder Fernando Martinelli announced on the governance forum that, after careful consideration, they have decided to shut down Balancer Labs. He pointed out that the v2 vulnerability attack on November 3, 2025, has created ongoing legal risks, and maintaining a corporate entity responsible for past security incidents is not conducive to the protocol’s future development. Additionally, this entity has become unsustainable without revenue. Core team members of Balancer Labs will be integrated into Balancer OpCo, pending approval through governance voting.

Fernando Martinelli stated that over the past three months, the protocol’s annualized total fee income exceeded $1 million. The protocol itself is still operational, but the issue lies in the economic model surrounding the protocol and its high-cost structure. He supports the ongoing tokenomics restructuring proposal, including reducing BAL emissions to zero, shutting down the veBAL system, directing 100% of protocol fees into the DAO treasury, reducing the V3 protocol split to 25% to attract liquidity, and providing liquidity exit options for holders through BAL buybacks.

In terms of products, the focus will be on reCLAMM, LBP, stablecoins and LST pools, weighted pools, and reducing deployments in low-value chains. Fernando Martinelli mentioned that after Balancer Labs closes, he will no longer have an official relationship with the protocol but is willing to continue providing support as an advisor.