One token, one share, and a reversal

Centrifuge has proposed converting CFG tokens into company shares at one token per share. The Centrifuge Network Foundation would become a Cayman-registered company able to issue equity. Holders of 100,000 CFG or more could hold shares directly; smaller holders would go through a trust arranged with CoinList.

The stated reasons are institutional: crypto volatility, regulatory exposure and governance constraints have made a public token harder to work with as that side of the business grew.

The timing is the awkward part

Less than a year ago CFG holders approved restructuring language stating there was no equity business. The same holders are now being asked to approve conversion into equity in one. Nothing about that is improper, but it does mean the earlier vote described an arrangement that no longer holds.

What has not been disclosed matters more than what has. The proposal does not set out the final ownership structure, what rights the shares carry, or how a holder would eventually sell them. Eligibility is described only as certain legal and eligibility requirements, still to be determined.

For a token holder the question is concrete: a liquid instrument with a market price is being exchanged for an illiquid one whose terms are not yet written. The 100,000-token threshold also splits the holder base into two classes with different arrangements, and the trust route has not been detailed either.