BAL Token

Ethereum Contract Address: 0xba100000625a3754423978a60c9317c58a424e3d

Overview

As Balancer Protocol moves to decentralize and diversify its governance, it will use the Balancer Governance Token (BAL) to grant voting power. Alignment between governance token holders and protocol stakeholders is crucial for successful decentralized governance, and BAL tokens are the vehicle to drive this alignment. BAL tokens are not an investment; BAL token holders should be people who interact with the protocol in some way, are committed to its future development, and want a seat at the governance table.

Contract Address

Liquidity Providers

Liquidity Providers (LPs) are the cornerstone of the Balancer Protocol. Liquidity attracts traders, trading generates fees, and pool profitability attracts more liquidity.

Early LPs take on more risk and opportunity cost, including contract risk and low initial pool profitability. We believe that these protocol users should get to participate early on in deciding how the protocol evolves. To this end, Balancer Labs proposed and implemented the Liquidity Mining program, in which Balancer governance tokens are distributed to LPs.

The details of V2 liquidity mining are still being hashed out by the Balancer Community and developers. At present, liquidity mining has transitioned to V2 entirely, except for the V1 AAVE Safety Module, which is expected to follow.

BAL Token Supply and Distribution

Supply

The maximum total supply of BAL tokens is capped at 100M; however, this does NOT necessarily mean that this cap will ever be reached. BAL token holders have the authority to decide if the distribution should end before hitting the cap.

Distribution

This chart outlines the allocation amounts. More details below.

BAL Recipient/Fund

BAL Amounts

Liquidity Providers

(Up to) 65M

Founders, Options, Advisors, Investors

25M

Ecosystem Fund

5M

Fundraising Fund

5M

Liquidity Providers

Every week 145,000 BAL tokens, or approximately 7.5M per year, are distributed to Liquidity Providers. At this rate, it would take a total of 8.666 years to distribute the remaining 65M BAL before reaching the 100M cap.

Founders, Options, Advisors, Investors

25M tokens were allocated to founders, stock options, advisors, and investors, all subject to vesting periods.

Ecosystem Fund

5M were allocated for the Ecosystem Fund. This fund will be deployed to attract and incentivize strategic partners who will help the Balancer ecosystem grow and thrive. BAL holders will ultimately decide how this fund is used over the coming years.

Address: 0xb618F903ad1d00d6F7b92f5b0954DcdC056fC533

Fundraising Fund

5M were allocated for the Fundraising Fund. Balancer Labs raised a pre-seed and seed round. This fund will be used for future fundraising rounds to support Balancer Labs' operations and growth. BAL tokens will never be sold to retail investors.

For full transparency, the seed series price of one BAL token was $0.60.

Address: 0xB129F73f1AFd3A49C701241F374dB17AE63B20Eb