Centrifuge Governance Proposal Allows 1:1 CFG Token to Equity Swap

Centrifuge proposes converting CFG tokens to company shares at a 1:1 ratio to address institutional limitations. The plan requires board approval, governance votes, and legal restructuring, with non-participants retaining current rights.

Woofun AI reports that Centrifuge has submitted a governance proposal to convert CFG tokens into company equity at a 1:1 ratio. The platform argues that the existing token structure hinders institutional participation, partner expansion, financing, and compliance, as CFG was originally designed for early-stage development rather than current institutional infrastructure needs.

Eligible holders may exchange tokens for equity following board approval, successful governance voting, and legal restructuring, with some participating via trust structures. Holders opting out can continue holding or selling CFG, while specific timelines and eligibility criteria remain pending. The proposal is currently in a 14-day comment period, with no final decision reached.