Across Protocol Considering Transition from DAO to Private Company, Token-for-Equity Swap

Risk Labs, the centralized development company behind UMA's optimistic oracles and Across's bridging protocol, wants the Across DAO to transition into a private company via an ACX token-to-equity exchange and buyout offer.

What's the Scoop?

• New Proposal: "The Bridge Across," a governance forum proposal submitted by Risk Labs to Across DAO this morning, is seeking community approval to transition Across from a token structured DAO into a traditional private company, a move it claims will better serve long-term growth.
• Equity Conversion Pathway: If supported, "The Bridge Across" would transition all Across IP into a U.S.-registered operating entity (AcrossCo), which will be responsible for managing development, partnerships, and commercialization. As many investors as legally permissible will be able to convert ACX tokens into newco equity exposure (as per relevant law, the conversion offer will be limited to ~100 accredited U.S. investors and ~500 international investors).
• Buyout Alternative: Holders who choose to not participate in the token-to-equity exchange will be afforded the opportunity to sell ACX for USDC at price of $0.04375, a 25% premium to token's 30-day average trading price prior to the publication of "The Bridge Across."
• Hidden Value: According to Risk Labs's proposal, the ACX token was "significantly undervalued" at its prior valuation. The market appears to agree; ACX more than doubled following the publication of "The Bridge Across," surging to highs above $0.07 per token.