Balancer’s community has submitted a proposal called "Fork and Reincarnate" that would preserve the protocol’s technology and ecosystem through an official fork if Balancer is ultimately shut down. The new protocol would be positioned as a platform for trading tokenized stocks.
MAXYZ would lead the new official fork entity
Under the proposal, MAXYZ would lead the creation of a new official fork entity. Part of Balancer’s liquidity, team, partners, users, and intellectual property would be moved to the new protocol. The proposal also seeks to push back the pause date for existing pools and the Vault to the second quarter of 2027.
About 6 million undistributed BAL would fund the project
On funding, the proposal would allocate Balancer’s remaining roughly 6 million undistributed BAL as seed capital for the new project, worth about $690,000 at current prices.
In exchange, if the new protocol later carries out a token issuance or another liquidity exit event, the Balancer treasury would receive value equal to 10% of the new protocol token’s fully diluted valuation, or FDV, in advance.
The fork would target tokenized stocks and other traditional assets
The proposal says the new protocol would focus on tokenized stocks and other traditional financial assets moving on-chain, using Balancer’s multi-asset pools, dynamic weights, dynamic fees, LVR capture, and managed pools.
To illustrate the opportunity, the proposal uses average daily U.S. stock trading volume of $750 billion. It estimates that if 10% of that volume moved on-chain, with a 1 basis point fee and a 1% market share, annualized revenue could theoretically reach about $27.4 million.
Intellectual property terms are part of the proposal
The proposal would grant the new fork a perpetual, irrevocable, non-exclusive license to Balancer-related intellectual property. If the original Balancer entity is dissolved, that license would be upgraded to an exclusive transfer of the intellectual property it holds.