Centrifuge Proposes Converting Token Into Equity
RWA platform Centrifuge has proposed a restructuring plan that would allow eligible CFG token holders to convert their holdings into company equity. The proposal outlines two paths: larger holders with at least 100,000 CFG could hold shares directly in the Cayman-based Centrifuge Network Foundation, while smaller holders may participate via a trust structure managed by CoinList. Conversion is optional and subject to eligibility criteria yet to be defined. The move comes as Centrifuge cites challenges with using a public token due to crypto volatility, regulatory risks, governance limitations, and the cost of maintaining liquidity. The company believes equity could attract more venture capital and strategic investment opportunities. This proposal marks a significant shift from last November’s restructuring plan that emphasized all value would flow through CFG tokens without any equity component. Details on final ownership structure, shareholder rights, or exit mechanisms for shares remain unclear.
Topics: blockchain equity conversion RWA (Real-World Assets) tokenomics