Balancer Proposes Zero Emissions, Higher LP Returns, and a $3.6M Buyback

By Chainwire

Tortola, British Virgin Islands, March 24th, 2026, Chainwire

Two linked governance proposals eliminate token emissions, give LPs 75% of swap fees, and commit $3.6 million to a BAL buyback and burn. The protocol is building its future on real revenue.

Most DeFi protocols dilute their token to attract liquidity. Balancer is taking a different approach. The protocol currently distributes roughly 3.78 million BAL per year in emissions. Two governance proposals now on the Balancer forum would change that entirely.

The governance proposals outlined below represent the next step forward. Following the November 2025 exploit of Balancer V2 pools, the protocol has recovered approximately $26.4 million in affected funds, with a claiming process for affected LPs now live and recovery efforts ongoing. These proposals build on that progress, restructuring Balancer's economics for long-term sustainability.

LPs earn more from every pool

Liquidity providers currently retain 50% of swap fees on Balancer. The proposed model raises that to 75%, with all remaining fees flowing to the DAO Treasury to fund operations and build long-term reserves. Balancer pools compete on infrastructure quality, rewarding LPs directly for the liquidity they provide. Without emissions subsidizing capital allocation, organic liquidity becomes both the goal and the standard.

“The technology works. The products generate real revenue. These proposals fix the economics to match,” said Marcus Hardt, CEO of Balancer Labs, leading the transition to Balancer OpCo.

The DAO commits $3.6M to a BAL buyback

The proposal earmarks $3.6 million, roughly 35% of the DAO Treasury, for a BAL buyback and burn priced at net asset value (NAV) per token. NAV is calculated as total Treasury value divided by circulating supply, currently approximately $0.16, which sits above the current market price. If fully exercised, the program would retire approximately 22.7 million BAL, roughly 35% of circulating supply.

The buyback window opens approximately 12 months after the governance snapshot, timed to coincide with vote-locked BAL (veBAL) lock expirations. A separate $500,000 compensation campaign for veBAL holders whose locked positions lose economic rights under the new model will be distributed over six months.

"Balancer is weathering the storm. These proposals give BAL holders the flexibility to exercise the buyback option at net asset value, or remain part of a DAO built for the long-haul," said Daniel Koch, Head of Operations at the Balancer Foundation.

Build around the products that generate real revenue

A companion operational proposal consolidates all activity with a leaner team under the Balancer Foundation, following the wind-down of Balancer Labs. Balancer will focus on core revenue-generating products and chains, with all other deployments under review. 

Both proposals are submitted to Balancer governance as a linked package for community feedback. Full proposal text is available on the Balancer governance forum (forum.balancer.fi).

About Balancer

Balancer is a decentralized protocol for programmable liquidity founded on Ethereum and deployed across multiple networks. Balancer V3 provides infrastructure for custom automated market makers, boosted pools, and concentrated liquidity products used by protocols, DAOs, and liquidity providers. More information is available at balancer.fi.

Contact

Growth
Marcus
Balancer
marcus@balancerlabs.dev

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