Risk Labs has proposed a significant change for Across Protocol by suggesting its transition from a decentralized autonomous organization (DAO) to a private company. This move comes as Across Protocol stands as the fourth-largest bridge by user deposits. Following the proposal, the price of the ACX token surged to over six cents per token. The potential restructure includes a mechanism for swapping ACX tokens for shares in the new company, reflecting the evolving landscape of digital asset management and governance.
Risk Labs proposed exchanging tokenholders’ ACX tokens for shares in a newly formed private company on a one-to-one basis. Access to the direct token-to-share exchange was limited to holders with more than 5 million ACX tokens. The proposal stated that 5 million tokens amounted to approximately $30,000 as of Wednesday evening. The exchange rate and eligibility criteria were set out as part of the proposed restructuring.
The plan included a special-purpose vehicle (SPV) through which about 100 U.S.-based investors and roughly 500 international investors could swap ACX tokens for shares. Investors who did not meet the direct-swap criteria or who did not wish to convert to shares were offered the option to sell their ACX tokens for four cents apiece. The four-cent cash option represented a 25% premium on the pre-proposal ACX price. The SPV and cash-sale alternatives were presented as separate options in the proposal.
Risk Labs is the proposer of the conversion proposal to change Across Protocol from a DAO to a private company. Risk Labs built the UMA protocol, which helps to settle disputes on Polymarket. The proposal concerns Across Protocol, which was the fourth-largest bridge by user deposits on Wednesday. Named individuals mentioned in the article include Hart Lambur and Aleks Gilbert.
The article places the proposal amid what it describes as a crisis of confidence in DAOs, and it cites Aave DAO infighting as an example. The ACX token price jumped to more than six cents per token after the proposal. Other entities referenced in coverage include Aave and Polymarket. The proposal also outlines token-to-share swap mechanics and special-purpose vehicle options for certain investors.
“Having a token generally hurts more than it helps.”
“Transitioning to a traditional legal entity would meaningfully improve our ability to enter enforceable contracts, structure revenue agreements, and deliver more value to Across stakeholders.”
“All token holders—institutional investors, employees, everyday token holders—are treated the same.”
Named individuals mentioned in the coverage include Hart Lambur and Aleks Gilbert. The three quoted statements address the drawbacks of maintaining a token, the expected improvements from moving to a traditional legal entity for contract enforcement and business structuring, and the equal treatment of institutional investors, employees and everyday token holders. The quotes were presented as part of the rationale for the proposed conversion.
Risk Labs’ proposal would convert Across Protocol from a DAO to a private company and would offer ACX token holders a route to exchange tokens for shares on a one-to-one basis, include special-purpose vehicle channels for about 100 U.S. and roughly 500 international investors, and provide a cash exit option at four cents per token. The proposal therefore focuses on shifting governance and legal structure to a traditional company and establishes eligibility thresholds and alternative exit mechanisms that directly affect ACX token holders.
