Eligible Centrifuge Token (CFG) Holders Back Share Proposal Pending Approvals

CP172, Centrifuge's proposal to let eligible holders surrender the Centrifuge token (CFG) for company shares, passed a governance vote, advancing a restructuring that remains subject to approvals and legal analysis.

The proposal received 98.53% support, 1.33% opposition and 0.14% abstentions. Voting ran from Sept. 3 to Sept. 10. The vote advances the proposal but does not complete the restructuring or open a subscription window.

Bhaji Illuminati, CEO of Centrifuge Labs and author of CP172, framed the decision as a choice for holders: “The question we're putting to the community is: would equity serve CFG holders better than a public token from here?”

CP172 proposes restructuring Centrifuge Network Foundation, Inc. as a Cayman Islands exempted company. The plan would replace a public-token value-accrual model with shares as the sole mechanism for holders to participate in company value. It addresses institutional participation, regulatory exposure and the costs of supporting token liquidity, listings and market infrastructure.

Eligible holders could surrender CFG to subscribe for shares at a ratio of one share per token. That ratio is a conversion formula, not an independent valuation of the company or its shares. CFG’s market price at the time of subscription would determine the effective price.

The shares would be tokenized, with digital tokens representing interests in shares held through the company’s member register or a trust. Holders with at least 100,000 CFG would be entered directly in the register. The proposed structure for holders below that threshold uses a CoinList trust.

All participants would need to complete know-your-customer (KYC) identity checks. U.S. persons who subscribe would need to be accredited investors under Rule 501(a) of Regulation D.

The shares are expected to remain illiquid for the foreseeable future. Any future secondary trading would face Cayman Islands rules and transfer restrictions. Holders who do not convert could keep or sell their CFG.

Centrifuge plans to wind down funding for public-token liquidity after the conversion window closes. The window’s timing and conditions have not been set; they are to be determined after approvals and legal structuring.