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Balancer plans to “reincarnate” and fork a new protocol, betting on on-chain trading of tokenized equities
BlockBeats news, September 22: The Balancer community has proposed the “Fork and Reincarnate” proposal, which plans to continue Balancer’s technology and ecosystem through an official fork in the event of a potential protocol shutdown, positioning the new protocol as a “tokenized equity trading platform.”
The proposal recommends that MAXYZ lead the establishment of a new official fork entity, migrating part of the liquidity, team members, partners, users, and intellectual property to the new protocol, while postponing the suspension of existing pools and the Vault until Q2 2027.
Regarding funding, the proposal plans to use Balancer’s remaining approximately 6 million undistributed BAL as seed funding for the new project, equivalent to approximately 690,000 US dollars at current prices. In exchange, if the new protocol conducts a token issuance or another liquidity exit event in the future, the Balancer treasury will receive in advance 10% of the new protocol token’s FDV.
The new protocol will focus on leveraging Balancer technologies including multi-asset pools, dynamic weights, dynamic fees, LVR capture, and permissioned pools, betting on bringing tokenized equities and other traditional financial assets on-chain. Using average daily U.S. equity trading volume of 750 billion US dollars as an example, the proposal estimates that if 10% moves on-chain, a 1 basis point fee is charged, and 1% market share is achieved, annualized revenue could theoretically reach approximately 27.4 million US dollars.
In addition, the proposal intends to grant the new fork a perpetual, irrevocable, non-exclusive license to Balancer-related intellectual property; if the original Balancer entity is dissolved, the relevant license will be upgraded to an exclusive transfer of the intellectual property it holds.
Original link: https://m.theblockbeats.info/flash/368356