Balancer Proposes Radical Restructuring After November Exploit

The restructuring plan includes reducing the number of full-time employees from 25 to 12.5, with an annual operating budget of $1.9 million – a 34% cut from the previous roadmap. The team aims to reduce the protocol's annual deficit from around $2.6 million to approximately $700,000 and extend its treasury runway from under four years to roughly nine.

The proposals also include a tokenomics revamp, which would halt all BAL emissions immediately and sunset veBAL, the protocol's governance and yield-bearing token. A portion of the fees generated by the protocol would be routed to the DAO treasury instead of being split among veBAL holders, core pool incentives, and partners.

To soften the blow for locked veBAL holders, a $500,000 compensation campaign will be paid in stablecoins over six months. Additionally, a BAL buyback and burn program is proposed, capped at 35% of treasury holdings or around $3.6 million, to provide exit liquidity for holders who want out.