Balancer Labs, the parent company of decentralized exchange Balancer, has announced its closure due to substantial losses from a hacker attack last year. Nevertheless, the Balancer protocol will continue to be operated by Balancer DAO and the foundation, generating revenue. The core team will be integrated into a new entity, BAL token issuance will cease, and all fees will be used to repurchase existing tokens, providing investors with a fair exit opportunity. The DeFi sector is currently undergoing restructuring, and the next 12 months will be a critical test for industry recovery.

Balancer proposed two governance proposals to eliminate the token issuance mechanism and reshape the economic model, increasing liquidity provider fees to 75% and repurchasing and burning BAL tokens worth $3.6 million. The move aims to reduce reliance on token incentives and shift toward real yield. It also launched a $500,000 compensation plan to balance interests, while consolidating resources to focus on core products, demonstrating a transition from a high-inflation model to a DeFi structure centered on cash flow.