This article presents a decentralized phase-shedding technique for multiphase converters. The usual central digital controller is replaced by identical local controllers forming a daisy-chain structure. Phase-shedding decisions are taken locally based on a local inductor current monitoring and threshold crossing management. This control strategy allows to implement as many phases as desired in a modular manner. In order to handle specific events such as load current inrush or a start-up sequence and to guarantee optimal transient responses, additional functions are included into each local controllers. The inter-cell communication protocol is described, along with necessary design considerations of threshold and timing values. Finally, functional simulations are carried out on a 5-leg 12V/1.2V 60W multiphase converter, which validate the proposed decentralized phase-shedding strategy for a microcontroller power supply implementation.