Balancer proposes shutdown and treasury distribution to BAL holders

Balancer, once among the most prominent decentralized exchanges in DeFi, is looking to close up shop and return what’s left to its token holders. A governance proposal posted to the protocol’s forum on Monday outlines an orderly winddown that would replace a previously approved buyback program with a redemption mechanism, letting BAL holders burn their tokens for a slice of the treasury. That treasury is estimated to be worth at least $9 million. How the winddown would work The proposal, labeled BIP-XXX, cancels the buyback program that token holders greenlit under BIP-919 back in April. In its place, the new plan introduces a burn-to-redeem structure: BAL holders destroy their tokens and receive a pro-rata share of whatever sits in the protocol’s coffers. Distributions won’t start immediately. The first round is scheduled for the end of May 2027, timed to coincide with the expiration of veBAL locks. That’s Balancer’s vote-escrowed token, similar to Curve’s veCRV model, where holders lock up tokens for governance weight and yield. Those locks need to run out before any redemption can begin. After the initial distribution, the proposal calls for a subsequent airdrop followed by a fi...