The native token of Across Protocol, $ACX, skyrocketed nearly 80% on Thursday after the cross-chain bridging platform introduced a proposal that could fundamentally reshape its governance structure. The proposal suggests dissolving the project’s decentralized autonomous organization (DAO) and transitioning to a traditional U.S. C-corporation, a move designed to make it easier for the protocol to secure institutional partnerships.
Following the announcement, ACX jumped from around $0.033 to as high as $0.07 before stabilizing near $0.06. The rally dramatically outperformed the broader crypto market, with Bitcoin and major digital assets remaining largely flat during the same period.
Why Across Wants to Leave the DAO Structure
The proposal, introduced as a preliminary “temp-check” vote, outlines the team’s belief that the current DAO-based framework has become a barrier when negotiating agreements with enterprises and institutional partners.
According to the proposal, the tokenized governance model complicates legal arrangements and slows down business development opportunities.
The team stated that moving toward a conventional corporate structure would improve the protocol’s ability to:
- Sign legally enforceable contracts with enterprise partners
- Structure revenue-sharing agreements
- Accelerate integrations with institutional platforms
- Unlock new growth opportunities for the ecosystem
Protocol contributors also emphasized that they believe the market has significantly undervalued the project, suggesting the restructuring could create a more sustainable growth framework.
Understanding the Temp-Check Vote
In decentralized finance governance, a temp-check is a non-binding poll used to measure community sentiment before launching an official governance proposal. If the community expresses sufficient support, the proposal then advances to a formal vote among token holders.
For Across Protocol, this early-stage vote will determine whether the project proceeds with plans to restructure the organization and convert token ownership into either corporate equity or a buyout option.
Token Holder Options Under the Proposal
If the proposal ultimately passes, ACX holders would have two primary choices:
- Convert tokens into equity in a newly created company.
- Sell tokens for USDC at a fixed price of $0.04375.
The buyout price represents roughly a 25% premium compared with the token’s 30-day average trading price before the announcement. However, the market quickly priced ACX above that level, signaling that traders may expect either a higher valuation or greater upside from the equity conversion option.
Creation of “AcrossCo”
The restructuring plan would establish a new corporate entity called AcrossCo, which would own the protocol’s intellectual property and oversee product development.
The equity conversion mechanics would work as follows:
- Holders with more than 5 million ACX could convert their tokens directly into equity.
- Smaller investors could participate through a special purpose vehicle (SPV) structure.
- The SPV option would require a minimum of 250,000 ACX, valued at roughly $10,000 at current prices.
- All conversions would follow a 1:1 token-to-share ratio, regardless of holder size.
Investors who prefer liquidity rather than ownership could choose the USDC buyout instead.
Buyout Timeline and Governance Schedule
The proposal also outlines a tentative governance and implementation timeline:
| Event | Date |
|---|---|
| Community discussion call | March 18 |
| Formal governance discussion period | Until March 25 |
| Snapshot vote | March 26 |
| Conversion process begins (if approved) | Early April |
If approved by the community, the USDC buyout window would open within three months and remain available for six months. The redemption would be funded using the protocol’s existing liquid assets.
Is the DAO Model Losing Momentum?
The proposal has sparked a broader debate across the decentralized finance sector. For years, DAOs and token governance were promoted as superior alternatives to traditional corporate structures for building decentralized infrastructure.
Across Protocol is now among the first major DeFi projects to publicly question that assumption. Contributors behind the proposal argue that while decentralized governance enabled early growth, it may now limit the protocol’s ability to scale within institutional markets.
Risk Labs, one of the main development groups behind Across, acknowledged that ACX has been “significantly undervalued” and described the restructuring as an opportunity to double down on the protocol’s long-term vision.
Market Reaction and Trading Frenzy
The announcement triggered intense speculative trading activity. ACX recorded approximately $149 million in 24-hour trading volume, nearly 3.5 times its total market capitalization.
Such extreme volume suggests that traders are aggressively positioning ahead of the governance vote. Some investors may be speculating on the buyout premium, while others appear to be betting that the equity conversion could unlock higher long-term value.
What Happens Next for Across Protocol
The coming weeks will determine whether the Across community supports one of the most radical governance transformations proposed in DeFi. If the plan succeeds, it could set a precedent for other protocols struggling to balance decentralization with institutional adoption.
For now, the explosive rally in ACX shows that the market is paying close attention to the experiment — and the future of DAO governance could depend on its outcome.
