Author: The Block

Translated by: Shenchao TechFlow

Shenchao Lead-In: The cross-chain bridge protocol Across Protocol has initiated a "temperature check" proposal to explore transitioning from a DAO structure to a U.S. C-Corp company.

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

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

The full text is as follows:

Across Protocol, a blockchain interoperability protocol led by Paradigm, has released a temperature check proposal exploring the transition 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 named AcrossCo will become the operating company behind Across Protocol. ACX token holders will have two options: equity exchange and token buyback.

The equity exchange option allows holders to exchange ACX for equity in AcrossCo on a 1:1 basis. Large holders can exchange directly, while smaller holders can participate via 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 to the average market price over the last 30 days, with a redemption window of 6 months.

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

The DAO structure has become a bottleneck

The Across team stated that as the demand for protocol infrastructure grows (especially from institutional partners), transitioning to a corporate and equity structure is being seriously considered. The team believes that the current DAO structure has limitations in cooperating with corporate partners, as these partners typically require executable contracts and clear legal counterparties.

"As institutional demand for Across infrastructure grows, the current DAO structure has become a bottleneck," the team stated in the proposal. "Corporate partners need executable contracts, and revenue agreements require legal counterparties. The type of transactions that drive the next phase of growth require a structure that a DAO today simply cannot provide."

"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 (the team behind the decentralized oracle UMA Protocol) manages the Across protocol. The foundation has been building Across for over four years, and the protocol has processed more than $35 billion in cross-chain transaction volume, co-creating the cross-chain intent standard ERC-7683.

Across Protocol is an intent-based interoperability protocol that connects 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 round, which raised $41 million, was completed last year, led by Paradigm, with participation from Bain Capital Crypto, Coinbase Ventures, and Multicoin Capital.

The team stated that after the transition, AcrossCo will hold the intellectual property and manage development, collaboration, and commercial affairs, while the underlying infrastructure will continue to operate in an open and permissionless manner.

Market Reaction

Following the release of the proposal, the ACX token price surged about 70% to around $0.06. However, the token is still down about 96% from its all-time high of $1.69 set in December 2024.

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