- Risk Labs, creator of major crypto protocols, proposes transitioning the Across Protocol bridge from a DAO to a private company.
- Founder Hart Lambur stated the rationale for the shift, “Having a token generally hurts more than it helps,” he wrote.
- The move comes as DAOs face a crisis of confidence, marked by low engagement, infighting, and controversial governance models.
- ACX tokenholders could swap tokens for shares in a new private entity, with a buyout option at $0.04 per token for others.
- The plan aims to improve Across Protocol’s ability to form enforceable contracts and pursue opportunities in stablecoins and AI.
Risk Labs proposed a radical shift on Wednesday by suggesting its widely-used Across Protocol bridge transition from a decentralised autonomous organisation to a new private company. Founder Hart Lambur explained the rationale succinctly on social media, asserting, “Having a token generally hurts more than it helps,” he wrote.
This proposal concerns the fourth-largest bridge by user deposits, which allows crypto transfers between siloed blockchains. Consequently, the value of its ACX governance token doubled following the announcement, indicating investor approval.
The plan emerges as DAOs are rocked by controversies, including infighting and claims of “decentralisation theatre.” Most recently, the DAO managing Aave saw bitter disputes that led to the planned departure of two prominent service providers, DeFi/aave-founder-says-controversial-proposal-will-get-amended/” rel=””>according to reports.
Risk Labs argues its token-centric model has hindered deals with other companies. Transitioning to a legal entity would improve its ability to enter enforceable contracts and deliver more value, the proposal reads.
Under the plan, tokenholders could swap ACX for company shares on a one-to-one basis. However, this direct option would be limited to holders with over 5 million tokens, worth about $300,000.
Alternatively, a special-purpose vehicle would facilitate swaps for hundreds of other qualified investors globally. ACX holders who are ineligible or uninterested can sell tokens for four cents each, a 25% premium over the pre-proposal price.
Lambur stated the private company structure would let Across focus on stablecoins and Artificial Intelligence. Meanwhile, Risk Labs also built the UMA protocol, which helps settle disputes on Polymarket.
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