Balancer (Ethereum)

BAL

BAL is the governance token of the Balancer protocol

Risk Rating
Best
$3.75
-0.71%
Summary
What we like
BAL innovates upon Curve's vote escrow tokenomics to incentivize users to lock up liquidity (80/20 BAL/WETH) to earn platform fees and voting power. Locking 80/20 BAL/WETH helps incentivize deep trading liquidity for BAL.
What we like less
BAL lockers (veBAL) are subject to lock-up periods between 1 week and 1 year in exchange for earning platform fees and voting benefits. Unlocking events can be highly volatile as protocols and users may choose to sell instead of relocking.
What it means for you
veBAL holders are entitled to receive 75% of all protocol fees and can boost liquidity provider (LP) rewards as it uses a multiplier system based on the duration of the lock-up period.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $210.2M
  • Fully Diluted Valluation: $235M
  • FDV / MC: 1.1
  • Ranking inside Exponential (excluding stables): #49
  • Circulating Supply: 56,209,511
  • Total Supply: 62,820,687
  • Total Supply: 96,150,704
  • Volume (24H): $7.4M
  • ATH: $74.45 (05/04/2021)
  • ATL: $2.92 (10/19/2023)
Risk Assessment
Best
Asset Strength

BAL is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Balancer, a protocol rated as Average.

Asset Tokenomics

BAL has a fixed supply.

Asset Volatility

BAL is highly correlated to the overall market.

Dependencies

Balancer

Things to know about BAL

What is BAL used for?

The BAL token is used to govern the Balancer protocol as well as provides holders the ability to submit potential changes to the allocation of pool rewards on the Balancer platform. The amount of voting power a user has scales linearly with the amount of veBAL tokens locked (obtained by locking 80/20 BAL/WETH) and the duration of the lock-up period (minimum of 1 week; maximum of 1 year). The veBAL quantity will decay over time to 0, after which the user can redeem their 80/20 BAL/WETH liquidity.

BAL tokenomics

The total supply of BAL is expected to be around 94M tokens. BAL launched with a constant inflation of 145K BAL per week with a 100M max supply. Following the launch of the veBAL tokenomics, a new halving schedule was introduced where the inflation schedule would be halved every 4 years with gradual declines every year. This means the total supply will come down to 94M from the prior 100M cap. The token distribution includes up to 65% reserved for Balancer LP rewards, 25% for founders, advisors and investors (all subject to vesting), 5% to the ecosystem fund, and 5% to the fundraising fund.

How does BAL accrue value?

BAL has value accrual mechanisms through its power to promote certain pools on the platform and locking mechanism to accrue rewards for long-term liquidity providers (LPs). Voters determine the different allocations of BAL tokens to each pool. Users are also incentivized to lock 80/20 BAL/WETH within the protocol in return for veBAL tokens. veBAL lockers are entitled to 75% of fees generated by the protocol's liquidity pool, as well is used to boost LP rewards.