Have tokens as value capture instruments failed?
We would argue that tokens are an imperfect mechanism, but experimentation continues and the jury is still out. In the meantime, some are simply returning to the tried and true.
Equity = Ownership = Value.
Two weeks ago, the Risk Labs team, the group behind Across Protocol (ACX), broached this topic via a proposal to swap tokens for equity.
“This proposal explores whether transitioning from a token structure to a private company through an ACX token-to-equity exchange and buyout offer would better serve long-term protocol growth. The goal of the proposal is to strengthen our commitment to Across, while continuing to ensure token holders can participate in Across’s success, to the extent legally permissible. This proposal is a temperature check. Nothing proceeds without community discussion and a formal governance vote.”
The discussions that have followed reveal a community genuinely wrestling with what may be a first-of-its-kind structural transition: tokens exchanged for equity. Supporters see it as a pragmatic and unusually fair exit from a broken decentralized autonomous organization (“DAO”) model. Critics do not necessarily disagree with the direction. Most accept that the DAO structure has limitations, but they are deeply concerned about fairness at the margins: the 250,000 token minimum, the accredited investor gate, the timing at price lows, and the lack of financial disclosure before asking for a vote.
The vote, planned for April 2, is subject to possible postponement to allow continued assessment and discussion.
The token-versus-equity debate will continue. Each situation must be considered based on its own facts and circumstances, but we are certain others will elect a similar path.
