Across Protocol has published a preliminary proposal to transition from a decentralized autonomous organization (DAO) governance structure to a traditional U.S. C-Corporation, with ACX token holders potentially able to exchange their tokens for equity shares in the new entity.
The proposal, which remains in early stages, would represent a significant structural shift for the protocol. Under the proposed framework, existing ACX token holders would gain the opportunity to convert their holdings into company shares, effectively converting their governance rights in the DAO into shareholdings in a conventional corporate entity subject to U.S. securities law and regulatory oversight.
The move reflects broader industry tensions between decentralized governance models and regulatory compliance, particularly as cryptocurrency protocols face increasing scrutiny from U.S. authorities regarding token classification and securities law. A transition to C-Corporation status would provide legal clarity around token ownership and governance rights, though it would fundamentally alter Across Protocol's operational structure and community governance model. The proposal requires community deliberation and formal voting before implementation.