ACX token slid 10% following allegations of governance manipulation within Across Protocol’s DAO. Critics accused insiders of voting irregularities to sway treasury allocations, eroding community trust. The sell-off reflects sensitivity to decentralized governance risks, especially in newer projects where token distribution remains concentrated.
The incident underscores challenges in DAO transparency, as anonymous teams can obscure decision-making. Investors penalized ACX for perceived centralization threats, contrasting with crypto’s decentralization ethos. Broader market profit-taking exacerbated the drop, though no fundamental protocol flaws were confirmed.
This highlights the importance of auditable governance mechanisms. Projects failing to ensure equitable voting may face sustained devaluation until trust is restored through verifiable reforms.
