Balancer co-founder announced the closure of BalancerLabs agreement to move to the DAO and foundation architecture to continue operations

Balancer co-founder Fernando Martinelli posted in the Governance Forum that after careful consideration, it was decided to close BalancerLabs. He pointed out that the continued legal risk posed by the v2 vulnerability attack makes maintaining a corporate entity responsible for past security incidents detrimental to the future development of the agreement and that the entity is no longer sustainable without a source of revenue. BalancerLabs core team members will be merged into BalancerOpCo, subject to governance voting approval. FernandoMartinelli said that the total annualized fee income from the Balancer agreement exceeded US$1 million in the past three months, and the agreement itself is still in operation. The problem lies in the economic model and excessive cost structure surrounding the agreement. He supports the ongoing proposals to restructure the token economy, including reducing BAL emissions to zero, shutting down the veBAL system, introducing 100% of agreement fees into the DAO vault, reducing the V3 agreement share to 25% to attract liquidity, and providing exit liquidity to holders through BAL buybacks. In terms of products, we will focus on reCLAMM, LBP, stablecoins and LST pools, weighted pools, and reduce the deployment of low value chains. Fernando Martinelli said he would no longer maintain a formal relationship with the agreement after BalancerLabs closes, but would continue to provide support as an adviser.