Why Did the Star Web3 Project Across Protocol Choose to Abandon the DAO?
Across Protocol, a prominent Web3 project, is proposing to transition from a decentralized autonomous organization (DAO) structure to a private company. Co-founder Hart Lambur explained on the Talking Tokens podcast that the current DAO model has become a bottleneck for growth, particularly as institutional and enterprise demand increases. The protocol, which has facilitated over $35 billion in cross-chain transactions, believes a more traditional corporate structure will allow it to operate more efficiently.
The proposal offers two options for ACX token holders: convert their tokens into equity in the new private entity, AcrossCo., or redeem them for USDC at a one-month average market price. Lambur acknowledged limitations due to U.S. securities laws, which restrict the number of shareholders in an S-corporation, necessitating consolidation for larger token holders.
This move reflects a broader industry trend of recognizing the operational challenges of DAOs. Lambur cited similar sentiments from Aave's founder and Uniswap's recent proposal to create a legal entity, highlighting the friction and inefficiencies of decentralized governance structures. The proposal will enter a two-week discussion period before a community Snapshot vote.
marsbit03/15 03:08
