Across Protocol proposes transitioning from DAO to a U.S. corporation, allowing token holders to convert to equity

The team believes that the DAO structure has become a bottleneck for institutional collaboration.

Author: The Block

Translation: Deep潮 TechFlow

Deep潮 Guide: Cross-chain bridge protocol Across Protocol has proposed a “temperature check” to explore transitioning from a DAO structure to a U.S. C-Corp company.

The new entity, AcrossCo, will take over protocol operations. ACX token holders can exchange 1:1 for equity in the company or redeem for USDC at a 25% premium based on the 30-day average price.

The team believes that the DAO structure has become a bottleneck for institutional cooperation. After the announcement, ACX surged by 70%. This could become a landmark case of DeFi projects shifting from token governance to traditional equity structures.

Full text below:

Led by Paradigm, the blockchain interoperability protocol Across Protocol has released a temperature check proposal to explore transitioning from a decentralized autonomous organization (DAO) and token structure to a U.S. C-Corporation and equity structure.

According to the plan, a new entity called AcrossCo will become the operating company behind Across Protocol. ACX token holders will have two options: equity exchange and token buyback.

The equity exchange allows holders to convert ACX 1:1 into equity in AcrossCo. Large holders can directly exchange, while small holders can participate through a free special purpose vehicle (SPV) structure.

The token buyback option allows holders to redeem ACX for USDC at a price of $0.04375 per token, which is a 25% premium over the average market price in the past 30 days. The redemption window is six months.

If community sentiment is positive, the team will initiate a formal governance vote two weeks after the temperature check, which can pass with a simple majority.

DAO Structure Has Become a Bottleneck

The Across team states that as the demand for protocol infrastructure grows—especially from institutional partners—transitioning to a company and equity structure is being seriously considered. They believe that the current DAO structure imposes limitations when working with corporate partners, who typically require enforceable contracts and clear legal counterparts.

“As institutional demand for Across infrastructure increases, the current DAO structure has become a bottleneck,” the team said in the proposal. “Corporate partners need enforceable contracts, and revenue agreements require legal counterparts. Transactions that drive the next phase of growth demand a structure that a DAO simply cannot provide today.”

“I believe this proposal will allow us to double down on the future while benefiting all existing token holders,” said Hart Lambur, co-founder of Across Protocol.

Protocol Background

Currently, the Risk Labs Foundation (also the team behind the decentralized oracle UMA Protocol) manages Across Protocol. The foundation has been building Across for over four years, with the protocol handling over $35 billion in cross-chain transactions and co-creating the ERC-7683 cross-chain intent standard.

Across Protocol is an intent-based interoperability protocol connecting blockchains like Ethereum and Solana, allowing users to bridge and exchange tokens across different networks.

Across Protocol has raised a total of $51 million through two rounds of token financing. The most recent $41 million round was completed last year, led by Paradigm, with Bain Capital Crypto, Coinbase Ventures, and Multicoin Capital participating.

The team states that after the transition, AcrossCo will hold intellectual property rights and manage development, partnerships, and commercialization activities, while the underlying infrastructure will continue to operate in an open and permissionless manner.

Market Reaction

After the proposal was released, the ACX token price surged by about 70% to around $0.06. However, it remains approximately 96% below its all-time high of $1.69 set in December 2024.

Looking ahead, Lambur said that Across plans to focus on stablecoin bridging and agentic payments.