ACX jumped 85% as the Protocol Across Weighted token-to-equivalent exchange
The price of the Across Protocol token rose sharply after a governance proposal proposed a major structural change to the project.
Summary
- The overall token of the Protocol jumped by 85% as the proposal proposes to convert the tokens into shares of the company.
- Owners can exchange ACX for equity in a new US C-corp or sell tokens for USDC in a buy order.
- This move is intended to help the protocol secure institutional relationships and commercial agreements.
ACX has seen a sharp burst in activity, trading at around $0.063 at the time of writing. The token has gained nearly 85% in the past 24 hours, raising its market capitalization to nearly $45 million.
Market participation has also increased. Daily trading volume increased to approximately $51.7 million, representing an increase of over 3,000% compared to the previous day.
A similar trend emerged in the derivatives market. CoinGlass data shows that the volume of derivatives trading has increased significantly, rising more than 7,700% to $138 million. Meanwhile, open interest jumped nearly 950%, to $20 million, indicating a wave of new positions entering the market.
The sudden rally followed a proposal made on March 11 at a joint governance forum by Risk Labs, the main development group responsible for the Across Protocol.
The proposal explores a token-to-equivalent exchange
The proposal, titled “The Bridge Across,” asks the public whether the protocol should evolve from a token-based structure to a US C-corporation.
If approved, a newly formed entity called AcrossCo will take over development, partnerships, and sales. The company will also hold the intellectual property of the protocol.
The proposal gives ACX owners two possible options. They can exchange their tokens for equity in a newly formed company or sell their assets in a buyout offering.
For those who choose the equity route, the system features a 1:1 conversion, which means that each ACX token will be traded for one share of the company. Owners with more than 5 million ACX will be able to convert their tokens directly into equity. Small owners, however, will gain exposure with a special purpose vehicle designed to consolidate their participation.
Token holders who wish to exit may accept a purchase offer set at $0.04375 per ACX, with payment made in USD Coin. That price represents about a 25% premium to the token’s average trading price over the past 30 days.
The purchase window will remain open for six months if the proposal is ultimately successful. Funding for the donation will come from the protocol’s liquid treasury.
A partnership of institutions driving the proposal
According to this proposal, the transition to a business-like structure is intended to address the practical challenges that private organizations face.
DAO-based governance can make it difficult to sign binding contracts, establish credit structures, or negotiate certain types of commercial agreements. These limitations sometimes create barriers when working with institutional partners.
Risk Labs said the change would make it easier for the project to secure relationships and revenue agreements while continuing to build the protocol infrastructure.
The proposal is currently a temperature test, meaning it is designed to gather public feedback before any binding vote takes place.
The timeline outlined in the document suggests an executive vote could occur as early as April. If approved, the legal infrastructure and token conversion will begin shortly thereafter.
Protocol Across has spent several years building a bridging infrastructure, including rapid applications designed to move assets between blockchains in seconds.
