Written by: Marcus | Balancer (@Marcus_Balancer)
We have just posted two major governance proposals for Balancer on the forum, proposals that will significantly reshape the current development landscape for Balancer.
The forum posts detail the mechanics. I wanted to share some more personal thoughts here: why I believe this is the right path, and why I remain bullish on Balancer's future prospects.
The past few months have been incredibly difficult.
We've dealt with an exploit, been in crisis mode for a long time, made a lot of hard decisions, and had some very painful conversations. Conversations about what parts of the business could still work and what parts could not.
We've also had to part ways with people we deeply respect. Not because they weren't capable, but because the architecture around the protocol no longer made sense.
And that's really the core of the issue.
Technically, things work. Balancer V3 runs smoothly, Boosted Pools work well, and the infrastructure we've built is quite solid.
What had stalled was the economic model around it.
The money being spent to attract liquidity was too high relative to the revenue that liquidity actually generated. We were diluting BAL holders to sustain a system that, in my view, no longer effectively served the protocol's development. At some point, you have to be honest about that.
That is the core issue these proposals seek to fix.
They propose ending BAL emissions entirely, directing 100% of protocol fees to the treasury, and lowering the protocol's take on swaps so that LPs earn more. These proposals come alongside a leaner operational structure and a smaller, but building, team.
None of this is easy.
Especially for veBAL holders, I understand this is a tough proposal. If you locked in good faith, losing those economic rights is painful. That's why buybacks and compensation are part of the overall package. The goal is not to force anyone's hand, but to provide a fair path forward and a real choice.
But for me, this isn't just about the restructuring. It's about whether Balancer can turn this moment into the start of a better chapter. I believe it can.
Balancer still has real products. Boosted Pools are seeing real adoption, our fungible concentrated liquidity solution is coming back stronger post-security overhaul. And I believe there is still room for the protocol to build new products and create new revenue streams. Products and streams that fit Balancer's unique positioning very well.
This doesn't mean all problems are solved, nor that we should start making promises we're not yet in a position to make. We need to execute on the core work first. We need to be more disciplined, more focused, and have a much clearer view of what creates real value and what does not.
But I do believe the foundation is there.
The team is now significantly smaller, and I don't say that lightly. But it is also a highly focused, highly aligned team. Clearer ownership, a leaner organization, fewer moving parts, and a deeper understanding of the current priorities.
I joined Balancer knowing it wouldn't be easy. It then became much harder. From the exploit, to crisis management, to this restructuring, I've stayed because I keep arriving at the same conclusion: there is still real value to be built from here for Balancer. If we can make this transition work, we have a chance to build a stronger, more sustainable protocol on the other side of it.
That is the bet we are making now.
The proposals are now live on the forum: forum.balancer.fi
Please read, question, and vote on them.
But I want to be clear: I believe @Balancer still has a meaningful future, and I believe this reset gives us a real chance to build it the right way.
