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Co-founder of Balancer Labs explains the reason for the company’s closure., 2026/03/24 13:34:08
The organization Balancer Labs, responsible for the decentralized protocol Balancer, is ceasing operations. The reason cited is financial difficulties, as stated by co-founder Fernando Martinelli.
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According to the entrepreneur, the decision was made after several months of addressing the aftermath of a hack and theft of $128 million that occurred in November. The existing corporate structure became a hindrance to the protocol’s development and proved unviable in the absence of stable revenue sources, Martinelli acknowledged.
Balancer effectively operates as a decentralized autonomous organization (DAO) with its own fund and network of service providers—under these circumstances, the need for a traditional corporate structure, as per the entrepreneur, has diminished.
Some members of the Balancer Labs team may transition to Balancer OpCo—this decision will be put to a community vote. Martinelli clarified that he does not intend to hold a formal position after the closure of BLabs but plans to remain in an advisory capacity. The co-founder mentioned that he considered the possibility of completely halting the project but ultimately rejected the idea, as the protocol continues to generate revenue. Over the past three months, Balancer has earned more than $1 million in fees.
The entrepreneur stated that the issue lies not with the product itself but with the tokenomics and expense structure, which remain inefficient. Martinelli endorsed a restructuring plan that includes:
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reducing the issuance of the utility token BAL to zero;
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directing 100% of fees to the DAO treasury;
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cutting operational costs and focusing on the most profitable products.
The next 12 months will be critical for the project team, Martinelli announced.
Previously, the project Step Finance, part of the Solana ecosystem, announced the closure of its subsidiaries SolanaFloor and Remora Markets following a hack exceeding $27 million and unsuccessful attempts to secure funding.
