Title: Aligning for Execution, Transparency, and CFG Value Accrual through Centrifuge Network Foundation
authors: bhaji
uses-component: cp4
technical-proposal: yes
requires-onchain: yes
impacts/modifies: cp0
status: rfc
date-proposed: 2025-10-13
date-ended:
Aligning for Execution, Transparency, and CFG Value Accrual through Centrifuge Network Foundation
Short Summary
The Centrifuge DAO has successfully bootstrapped a foundational ecosystem for real-world assets (RWAs). However, the protocol has reached an inflection point where the competitive RWA market, projected to be decisive in the next 12-24 months, demands operational velocity and strategic focus that decentralized governance structures can inhibit. DAO-led operations often face challenges of low voter participation, execution bottlenecks, and diluted accountability. In today’s competitive RWA market, these inefficiencies put token holder value at risk.
This proposal recommends moving operational decision-making, strategy and execution into Centrifuge Labs, with governance and oversight from the Centrifuge Network Foundation (CNF) Board. The DAO retains the right and ability to reassume governance or operational control in the future if the community determines that a more decentralized structure is once again beneficial.
Every action by CNF will be aligned toward growing adoption of the Centrifuge protocol and increasing CFG value. Centrifuge Labs is a wholly-owned subsidiary of the Centrifuge Network Foundation. There is a single value accrual mechanism: CFG.
To reiterate: the entire team is aligned around CFG, there is no equity business.
High-level objectives
- Accelerate protocol adoption: Focused execution allows Centrifuge to act quickly, onboard more institutions, and expand distribution channels at the speed required to capture RWA market share.
- Compete effectively in a decisive window: The next 12-24 months will define RWA leadership. This structure provides the agility and coordination needed to secure Centrifuge’s position.
- Maximize CFG value: With unified oversight of treasury and execution, CNF can make timely, confident decisions that strengthen CFG’s utility and long-term value.
Background
The Centrifuge DAO laid the foundation for a decentralized RWA ecosystem funding early initiatives, establishing governance norms, and enabling the protocol’s initial success. This community-driven phase was essential to reaching today’s scale.
However, the next chapter requires a different approach. As the RWA market rapidly matures, the competitive landscape demands speed, focus, and conviction. What got us here – a broad, decentralized governance process that was invaluable for bootstrapping – won’t get us there.
The recent success of Centrifuge has been driven by the new leadership team, who have brought deep experience from both TradFi and FinTech. The ability to act decisively has delivered meaningful results:
- A fast-growing institutional pipeline with partners including Janus Henderson, Apollo and S&P
- Expanded distribution channels bringing RWAs into new markets
- Rapid growth to $1.2B TVL, propelling Centrifuge alongside BlackRock’s BUIDL
- $15M in forecasted revenue for 2026
These wins show the impact of moving quickly and strategically. This proposal builds on that momentum by aligning structure with execution, giving us the best chance to capture adoption and maximize CFG value.
Commitment to CFG value accrual
The Centrifuge Network Foundation’s top priority is to ensure CFG remains the single mechanism through which all ecosystem value accrues. CNF is committed to establishing a sustainable, transparent framework for CFG tokenholder value. Over the coming months, CNF will conduct a detailed analysis of current market models to determine what best supports Centrifuge’s growth, capital structure, and strategic goals. The focus will be on balancing the funding of business operations, supporting protocol expansion, and strengthening CFG’s market position. This will be CNF’s first major initiative under the new structure, with progress and results reported publicly through centrifuge.foundation and Centrifuge’s official social channels.
Description of Activity
- Migration of Operations
- Strategy and execution transition to Centrifuge Labs, operating under CNF oversight.
- Labs will lead marketing, product, partnerships, distribution, and revenue growth.
- Transfer of Assets
- DAO assets (CFG, stable tokens and fiat/digital currency) will be transferred to CNF for management, with clear transparency and reporting obligations.
- Governance Simplification
- The DAO’s active governance mechanisms (proposals, working groups) will pause.
- There will be one planned additional DAO vote to depreciate the Centrifuge Chain in accordance with CP149.
- Tokenholders will retain ultimate control under this setup. If tokenholders want to reinstate the DAO, they will have the ability to create a proposal to transfer control back to the DAO. The forum and Snapshot voting will be maintained.
- Transparency Measures
- Maintain robust public dashboards covering TVL, revenue, and adoption metrics.
- Quarterly earnings calls presented in public-company format with the first in Q1 2026.
- Community Support
- Select members from the current DAO will move into Centrifuge Labs to continue to maintain a community engagement focus under the marketing team.
- Telegram, discord, reddit and other community groups will continue to operate.
Change or improvement
This proposal represents an evolution from DAO-led decision-making to Foundation-led governance and Labs execution, improving clarity, accountability, and speed without closing the door on future decentralization. Under the current DAO structure, many institutional partners have faced challenges performing due diligence on a decentralized organization, which introduces operational risk. For example, a DAO vote could change protocol fees or operational parameters without predictable timelines or accountability. These uncertainties have been cited by institutional managers as barriers to engagement.
By contrast, consolidating execution under Centrifuge Labs allows for clear ownership, faster response times, and greater confidence for partners. With Labs assuming operational control under CNF oversight, future partnership negotiations and launches can move significantly faster while maintaining transparency through reporting and board governance.
Key improvements:
- Centralized execution, decentralized oversight: CNF and Labs take on operational mandates with clear responsibility, under transparent reporting to the community.
- Asset and strategy alignment: All DAO assets are unified under CNF to fund growth and maximize CFG value.
- Reversible by design: The DAO may, through future governance processes, choose to reclaim operational or treasury control as appropriate.
The improvement is clarity: Centrifuge will have one accountable operator, one oversight body, and one value accrual mechanism (CFG). This eliminates ambiguity, reduces institutional friction, accelerates adoption, and ensures every action taken is designed to maximize long-term value for CFG holders. This structure aligns incentives across all contributors while preserving the community’s long-term agency.
Alignment to the mission of Centrifuge DAO
The Centrifuge mission remains unchanged: to build sustainable, open infrastructure for RWAs.
This evolution strengthens that mission through:
- Sustainability: Equipping Centrifuge with the structure to compete globally and scale efficiently.
- Transparency: Implementing robust, public reporting standards.
- Focus: Ensuring every action drives adoption and CFG value growth.
The DAO lit the path. CNF and Labs now carry the torch on behalf of, and accountable to, the community that started it.
Next steps
After the RFC period, the proposal will be submitted to onchain voting with a remark and all CFG token holders can vote on this proposal.