A DeFi protocol has just proposed going private because its administrators believe the current DAO structure is creating an obstacle to closing institutional deals.
Across Protocol’s ACX token jumped 80% to $0.06 on Thursday after the team behind the cross-chain bridging platform published a “temporary verification” proposal to dissolve its token structure and convert it into a traditional US C corporation.
“As Across deepens our work with institutional and enterprise partners, the token and DAO structure has materially impacted our ability to close partnerships and integrations,” the proposal reads. “Transitioning to a traditional legal entity would significantly improve our ability to enter into enforceable contracts, structure revenue agreements and deliver greater value to all stakeholders.”
“At ACX’s current valuations, we believe Across Protocol is significantly undervalued. The proposed structure provides us with the opportunity to explore new ways to foster growth while acting in the best interest of the broader Across community.”
A temporary check in DeFi governance is essentially a non-binding survey that measures community sentiment before a formal vote. It allows the team to see if there is enough support to proceed as an official governance proposal, which is then voted on by token holders.
The move would give token holders two options: exchange their ACX for shares of the new company, or sell their tokens for USDC at $0.04375, a 25% premium over the average trading price of the previous 30 days.
The token was trading at approximately $0.033 before the proposal went live. The immediate rise to $0.07 before settling around $0.06 reflects the market price at the buy floor, although the current price is already well above the proposed buy of $0.04375, suggesting that traders are betting on a higher bid or that the stock option is worth more.
In comparison, BTC is currently trading flat, according to market data from CoinDesk. The CoinDesk 20, which measures the performance of the largest digital assets, is also trading unchanged.
The mechanics are simple. A new entity called “AcrossCo” would maintain all IP protocols and manage development. Holders of tokens exceeding 5 million ACX could convert them into shares directly.
Smaller holders could access capital through a commission-free SPV structure with a minimum of 250,000 ACX, approximately $10,000 at current prices. Everyone is treated equally at a 1:1 token-to-share ratio, regardless of size.
Those who don’t want stocks get the purchase of USDC at a 25% premium. The purchasing window would open within three months of the proposal being approved and would remain open for six months, funded by the protocol’s liquid assets.
A community call is scheduled for March 18, formal discussion will run through March 25 and an instant vote would follow on March 26. If approved, the conversion would begin in early April.
Is the DAO vision dead?
DeFi advocates spent years arguing that tokens and DAOs were superior to traditional corporate structures for building decentralized infrastructure.
Across is one of the first protocols to publicly argue the opposite: that the token structure is actively slowing growth and that a C-corp would offer more value to the same stakeholders.
Risk Labs acknowledged that the token has been “significantly undervalued” and described the proposal as an opportunity to “double down on Across” through a structure that institutional partners truly understand.
The 24-hour trading volume of $149 million is approximately 3.5 times the token’s market capitalization, reflecting the intensity of speculative interest around the proposal.
Whether that interest translates into support for conversion or simply a compromise on the purchase premium is what the next two weeks of governance discussion will determine.
