Across Protocol is going private, and ACX holders are faced with an interesting choice. The team proposes to dissolve the DAO structure and convert into a traditional American C-corporation called AcrossCo. The idea is that a standard corporate structure makes it easier for institutional partners to collaborate and sign contracts.

The market responded quite enthusiastically to this proposal. ACX surged significantly after the plan was announced, although the price is now hovering around $0.04. Token holders have two options: exchange their ACX for shares in the new company at a 1:1 ratio, or sell their tokens for USDC at $0.04375. This buyout price is a 25% premium over the average trading price before the proposal went live.

What’s interesting is that many traders seem to be betting on that premium opportunity or believe the stock option will be more valuable. Trading volume was extremely high, showing how much speculation surrounds this proposal. For comparison: Bitcoin is currently trading flat, so this is truly an Across story.

How does it work in practice? Token holders with more than 5 million ACX can directly convert to shares. Those with less can participate through an SPV structure with a minimum of about 250,000 ACX. Everyone gets the same 1:1 ratio, so no distinction between large and small holders. Those who don’t want to participate will receive the USDC buyout at a premium.

The governance vote was scheduled for the end of March, so by now it should be clear whether this proposal will be approved. Risk Labs said that ACX is “significantly undervalued” and sees this as an opportunity to double down on Across.

The funny thing is that this is a pretty drastic step. For years, DeFi advocates argued that tokens and DAOs are better than traditional companies. Across is now essentially saying the opposite: that the token structure holds them back and that a C-corporation works better. That’s quite a moment for the DeFi community to reflect on.