Balancer Labs, co-founded by Fernando Martinelli, will be closing due to legal risks stemming from a vulnerability incident in November 2025 and the company's unsustainable revenue structure. The protocol will transition to being operated by a DAO, foundation, and service providers. Some core members may join Balancer OpCo, pending governance votes. Martinelli supports structural adjustments, including halting BAL incentives, phasing out veBAL, directing 100% of protocol fees to the DAO, optimizing fee distribution, implementing BAL buybacks for liquidity, and reducing product scope and on-chain deployments to cut costs and enhance sustainability.