Across Protocol Proposes Transitioning from DAO to U.S. Corporation, Allowing Token Holders to Exchange Tokens for Equity
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Across Protocol Proposes Transitioning from DAO to U.S. Corporation, Allowing Token Holders to Exchange Tokens for Equity
The team believes that the DAO structure has become a bottleneck for institutional collaboration.
Navigating Web3 tides with focused insightsAuthor: The Block
Compiled by TechFlow
TechFlow Intro: Across Protocol, a cross-chain bridge protocol, has launched a “temperature check” proposal exploring a transition from its current DAO structure to a U.S. C-Corporation.
The new entity, AcrossCo, will assume operational responsibility for the protocol. ACX token holders may either exchange their tokens 1:1 for equity in AcrossCo or redeem them for USDC at a 25% premium over the 30-day volume-weighted average price (VWAP).
The team believes the DAO structure has become a bottleneck for institutional collaboration. Following the announcement, ACX surged nearly 70%. This move could mark a landmark case of a DeFi project shifting from token-based governance to a traditional equity structure.
Full text below:
Across Protocol—a blockchain interoperability protocol backed by Paradigm—has published a temperature check proposal exploring a transition from its current decentralized autonomous organization (DAO) and token-based structure to a U.S. C-Corporation and equity-based structure.
Under this plan, a new entity named AcrossCo would become the operating company behind Across Protocol. ACX token holders will be offered two options: equity conversion and token buyback.
The equity conversion option allows holders to exchange ACX tokens for AcrossCo equity on a 1:1 basis. Large holders may convert directly, while smaller holders may participate via a no-cost special-purpose vehicle (SPV) structure.
The token buyback option allows holders to redeem ACX tokens for USDC at $0.04375 per token—a 25% premium over the 30-day market VWAP—with a redemption window of six months.
If community sentiment is positive, the team plans to launch a formal governance vote two weeks after the temperature check concludes; passage requires only a simple majority.
The DAO Structure Has Become a Bottleneck
The Across team states that as demand for the protocol’s infrastructure grows—especially from institutional partners—the shift to a corporate and equity-based structure is now under serious consideration. The team believes the current DAO structure imposes constraints when collaborating with enterprise partners, who typically require enforceable contracts and clearly defined legal counterparties.
“As institutional demand for Across’s infrastructure grows, the current DAO structure has become a bottleneck,” the team states in the proposal. “Enterprise partners need enforceable contracts; revenue agreements require a legal counterparty. The types of transactions required to drive the next phase of growth demand a structure that today’s DAO simply cannot provide.”
“I believe this proposal enables us to double down on our future while delivering benefits to all existing token holders,” said Hart Lambur, co-founder of Across Protocol.
Protocol Background
Currently, Risk Labs Foundation—the same team behind the decentralized oracle UMA Protocol—oversees the Across Protocol. The foundation has built Across for over four years. To date, the protocol has processed over $35 billion in cross-chain transaction volume and co-created the cross-chain intents standard ERC-7683.
Across Protocol is an intent-based interoperability protocol connecting blockchains such as Ethereum and Solana, enabling users to bridge and swap tokens across different networks.
Across Protocol raised a total of $51 million across two token sales. Its most recent round—a $41 million raise completed last year—was led by Paradigm, with participation from Bain Capital Crypto, Coinbase Ventures, and Multicoin Capital.
The team notes that following the transition, AcrossCo will hold the intellectual property and manage development, partnerships, and commercialization activities, while the underlying infrastructure itself will remain open and permissionless.
Market Reaction
Following the proposal’s release, the ACX token surged nearly 70%, briefly reaching ~$0.06. However, it remains down approximately 96% from its all-time high of $1.69, set in December 2024.
Looking ahead, Lambur says Across plans to focus on stablecoin bridging and AI-powered agentic payments.
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The Block
