A DeFi protocol just proposed to go private as its stewards believe the current DAO structure creates 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 bridge platform published a ‘temp-check’ proposal to dissolve its token structure and convert to a traditional US C corporation.
“As Across deepens our work with institutional and corporate partners, the token and DAO structure has significantly impacted our ability to close partnerships and integrations,” the proposal reads. “Transitioning to a traditional legal entity would meaningfully improve our ability to enter into enforceable contracts, structure revenue agreements and deliver more value to across stakeholders.”
“At the current ACX valuations, we believe the Across protocol is significantly undervalued. The proposed structure allows us to explore new ways to drive growth while acting in the best interests of the wider Across community.”
An interim check in DeFi governance is essentially a non-binding poll that gauges community sentiment before a formal vote. That lets the team 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 choices: exchange their ACX for equity in the new company or sell their tokens for USDC at $0.04375, a 25% premium to the previous 30-day average trading price.
The token was trading at around $0.033 before the proposal went live. The immediate rise to $0.07 before settlement around $0.06 reflects market prices in the buyout floor, although the current price is already well above the proposed $0.04375 buyout, suggesting traders are betting on either a higher offer or that the stock option is worth more.
In comparison, BTC is currently trading flat, according to CoinDesk market data. The CoinDesk 20, which measures the performance of the largest digital assets, is also trading flat.
The mechanics are straightforward. A new entity called “AcrossCo” would hold all protocol IP and manage development. Token holders above 5 million ACX could convert to equity directly.
Smaller owners could access equity capital through a fee-free SPV structure with a minimum of 250,000 ACX, approx. $10,000 at current prices. All are treated equally in a 1:1 token-to-share ratio regardless of size.
Those who do not want equity get the USDC buyout at a 25% premium. The buyout window opens within three months of the adoption of the proposal and remains 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 a Snapshot vote would follow on March 26. If it goes through, the conversion will begin in early April.
Is the DAO vision dead?
DeFi proponents 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 actively holds back growth and that a C-corp would deliver more value to the same stakeholders.
Risk Labs acknowledged that the token has been “significantly undervalued” and described the proposal as a chance to “double across” through a structure that institutional partners actually understand.
The 24-hour trading volume of $149 million is about 3.5 times the token’s market cap, reflecting the intensity of speculative interest surrounding the proposal.
Whether that interest translates into support for the conversion or just a trade for the buyout premium is what the next two weeks of government debate will determine.
