Balancer has announced a major overhaul of its tokenomics and operational framework following a $120 million security incident. The DeFi protocol aims to shift from token release-driven growth to revenue-driven sustainable operations. Key changes include halting BAL token emissions, discontinuing the veBAL governance mechanism, and restructuring the operational team to reduce the annual budget by 34%.
The proposal also includes redirecting all protocol fees to the DAO treasury and reducing the V3 protocol's fee cut to enhance liquidity provider incentives. Balancer plans to offer a $500,000 compensation program for veBAL holders and a "Burn for Stablecoin" channel, allowing BAL holders to exchange tokens for stablecoins at a set price. These reforms are projected to increase the DAO's annualized revenue to $1.22 million, extending the treasury's lifespan to nearly nine years, contingent on optimistic assumptions about TVL recovery and operational efficiency.
Balancer Proposes Overhaul of Tokenomics and Operational Structure
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