Across Protocol Proposes Transition From DAO to US C-Corp Structure

The cross-chain bridge project Across Protocol, which receives financial backing from Paradigm, has initiated a "temperature check" proposal to fundamentally alter its governance model. The proposal suggests transitioning the current Decentralized Autonomous Organization (DAO) structure into a formal United States C-corporation. This move represents a significant shift in the project's legal and operational framework, aimed at integrating more closely with traditional corporate governance standards while providing concrete options for current stakeholders.

Token Conversion and Redemption Mechanisms

Under the proposed restructuring, holders of the ACX token are presented with two primary pathways. The first option allows participants to exchange their digital assets for company equity at a precise 1:1 ratio, effectively turning token holders into shareholders of the new entity. For those who prefer to exit their positions, a second option provides a redemption mechanism where tokens can be swapped for 0.04375 USDC per unit.

• Equity Swap: 1 ACX token for 1 share of the C-corp.
• Cash Exit: 0.04375 USDC per ACX token.
• Governance Change: Shift from on-chain voting to corporate board oversight.

Strategic Context and Legal Implications

The transition of a cross-chain bridge protocol to a corporate entity reflects a growing trend where decentralized projects seek greater legal clarity and structural stability within the United States jurisdiction. By adopting a C-corp status, Across Protocol may gain improved access to traditional banking services and institutional partnerships. A C-corporation is a legal structure in the US where owners or shareholders are taxed separately from the entity, often preferred by venture capital investors for its scalability and clear regulatory standing.

This proposal comes at a time when regulatory scrutiny over decentralized governance is intensifying globally. The outcome of the temperature check will determine whether the community favors the protections and formalities of a corporate shell over the flexibility of a DAO. As of March 12, 2026, the discussion remains open for community feedback before a formal vote proceeds, marking a pivotal moment for the evolution of interoperability protocols in the blockchain ecosystem.