Across Protocol Proposes to Convert DAO into a U.S. C‑Corporation
Risk Labs, the team behind the cross‑chain bridge Across, has submitted a governance proposal that would dissolve the project’s token‑based DAO and replace it with a privately held corporation. The plan, outlined in a forum post on Thursday, gives ACX token holders a choice between receiving equity in the new entity or cashing out at a premium.
The proposal
Risk Labs intends to wind down the current ACX DAO and establish a U.S. C‑corporation that will own and operate the Across bridge. Under the terms presented to the community, ACX holders can:
- Swap tokens for equity – a direct 1‑for‑1 conversion of ACX to shares of the new company, available to anyone holding 5 million ACX or more.
- Cash out for USDC – sell tokens at a fixed price of $0.04375 per ACX, which is about 25 % above the 30‑day trailing average price at the time of the announcement.
The buy‑out would be financed from the protocol’s liquid reserves, which roughly match its current market capitalization. The team expects to open a six‑month redemption window within three months of a successful DAO vote.
Market reaction
Following the announcement, ACX rallied roughly 70 %, reaching $0.06 and pushing the token’s implied valuation to about $60 million. The price remains far below its peak of $1.69 in December 2024, a decline of more than 95 % according to price aggregators.
Rationale from the team
Co‑founder Hart Lambur highlighted operational friction with institutional and enterprise partners as the primary driver for the restructuring. According to Risk Labs, the existing token‑governed model has limited the ability to negotiate enforceable contracts and to close larger deals. A conventional corporate structure, they argue, would:
- Offer clearer legal standing for commercial agreements.
- Reduce governance overhead that can slow decision‑making.
- Enable the team to pursue “stablecoin bridging and agentic payments” as its next growth areas, with two undisclosed partnerships already in the pipeline.
Funding background
Across raised $41 million in a 2023 round led by notable crypto‑focused investors such as Paradigm, Bain Capital Crypto, Coinbase Ventures, and Multicoin Capital. The latest proposal signals a strategic shift for those backers as well, moving from a decentralized finance (DeFi) model toward a more traditional corporate form.
Analysis
The move is one of the more high‑profile examples of a DeFi project transitioning to a centralized corporate entity. Several implications merit attention:
| Aspect | Potential Impact |
|---|---|
| Governance | Token holders will lose direct voting power over protocol upgrades. Equity holders will gain influence, but through a private company whose shares are not publicly tradable. |
| Regulatory exposure | Operating as a U.S. C‑corp may bring the project under stricter securities and financial‑services regulations, which could both increase compliance costs and provide greater legitimacy with traditional partners. |
| Liquidity | The cash‑out option offers immediate liquidity at a modest premium, but the equity conversion could lock participants into a longer‑term, illiquid holding. |
| Investor confidence | The price spike suggests optimism about the corporate route, yet the steep discount from the all‑time high indicates lingering skepticism about the long‑term upside. |
| Future product roadmap | A corporate structure may accelerate enterprise adoption of stablecoin bridges and “agentic” payment solutions, but it may also deter community‑driven innovation that thrives in DAO environments. |
The success of the proposal hinges on the upcoming DAO vote. If passed, the transition could set a precedent for other DeFi protocols wrestling with institutional friction, while also sparking debate over the trade‑offs between decentralization and commercial scalability.
Key takeaways
- Proposal: Convert Across from a token‑governed DAO to a privately held U.S. C‑corporation.
- Holder options: 1:1 token‑to‑equity swap (for holders ≥5 M ACX) or cash out at $0.04375 USDC per token.
- Market response: ACX price rose ~70 % to $0.06, valuing the token at ~$60 M, still 96 % below its peak.
- Motivation: Reduce legal and operational friction with institutional partners, enabling enforceable contracts and new commercial opportunities.
- Financing: Protocol’s liquid assets will fund the buy‑out; redemption window expected within three months of approval.
- Future focus: Stablecoin bridging, agentic payments, and two undisclosed deals aimed at “free” money movement for users.
- Stakeholder risk: Shift from decentralized governance to private equity may affect community involvement, regulatory exposure, and token liquidity.
The proposal now awaits a formal vote by the ACX DAO. Its outcome will determine whether Across continues as a community‑run bridge or adopts a more conventional corporate blueprint to pursue its next phase of growth.
Source: https://thedefiant.io/news/defi/across-protocol-proposes-shift-from-dao-to-private-company
