Balancer Community Proposes $8 Million Reimbursement Plan After $116M Hack

Following the successful retrieval of a portion of the funds stolen in Balancer’s significant November exploit, the protocol community has proposed a plan to distribute these recovered funds. The proposal outlines how approximately $8 million, recovered through collaboration between white-hat hackers and internal responders, will be distributed amongst the pools impacted by the attack. While another $20 million, recovered independently by StakeWise, will follow its own dedicated plan for its users. Notably, the proposed reimbursement strategy prioritizes targeted, in-kind payouts to affected pools, avoiding socialized losses and potentially serving as a new standard for post-exploit fund distribution within DeFi governance. This approach aims to minimize price distortions and ensure a proportional recovery process for all stakeholders. The proposal now awaits community review and discussion before being put into action, with Balancer seeking to restore user confidence following one of the most serious security failures in its history.