✅ #aura Orderly Protocol Wind-Down and Treasury Redemption for Aura
#HIGH #GovernanceVote
Status: Discussed
Aura Finance contributors have shared a forum post proposing an orderly wind-down of the protocol in response to Balancer's [proposed sunsetting of the veBAL system]. The proposal argues that without BAL gauge emissions and veBAL, "the cost of running the protocol outweighs the value added through voting markets."

The wind-down is structured across two redemption stages:
- Stage 1 (four weeks after approval): The protocol enters withdrawal-only mode for liquidity providers, AURA emissions end, and veBAL unwinding begins. 100% of treasury assets are distributed pro-rata to AURA holders, who also receive an `auraRedeem` token representing their Stage 2 claim. auraBAL holders continue receiving veBAL fees, and vlAURA voting markets remain active.
- Stage 2 (56 weeks after approval): Once veBAL positions are fully unlocked, auraBAL holders can redeem 90% of auraBAL-backed assets, with the remaining 10% claimable by AURA holders via their `auraRedeem` tokens. Aura's proportional share of the Balancer DAO's proposed $500,000 veBAL compensation would be distributed to AURA holders at this stage. The `auraRedeem` supply freezes at Stage 2 open, finalizing eligible AURA claims. The Aura Foundation would sunset upon Stage 2 completion.

The forum post estimates a redemption value of ~$0.0226 per AURA under current conditions. Liquidity providers are advised to claim rewards and withdraw deposits, migrating to native Balancer pools.
Aura Finance | Discontinued Product
📅 26.03.2026 6:55:16
#SmartEvent