The LayerZero Foundation has unveiled a bold proposal to acquire all circulating Stargate (STG) tokens in a deal worth roughly $110 million in its own ZRO token. If approved, the move would dissolve Stargate’s independent DAO and bring one of the most-used cross-chain bridges directly under LayerZero’s control.
💰 Inside the Offer
Announced on August 11, the proposal values STG at $0.1675 slightly above its pre-announcement price of $0.1637. The deal would swap each STG for 0.08634 ZRO, based on ZRO’s $1.94 market price at the time.
Once completed:
- STG tokens would no longer be used operationally.
- Holders could redeem them for ZRO at the fixed rate indefinitely.
- The Stargate DAO would be dissolved, with governance integrated into LayerZero’s structure.
LayerZero says all future Stargate earnings would be used for ZRO buybacks, gradually reducing supply. The aim is to unify governance, speed up product launches, and expand beyond bridging into new consumer-facing services.
🌉 Stargate’s Track Record
Launched in 2022, Stargate has already processed over $70 billion in transactions and introduced its Hydra system to optimize liquidity deployment across multiple blockchains.
📈 Market Reaction
The market welcomed the news:
- STG jumped 12% to $0.188.
- ZRO climbed 15%, pushing the deal’s estimated value closer to $127 million.
The proposal is now in a seven-day discussion phase on the Stargate DAO forum, followed by a community vote. Approval will require 70% yes votes and a quorum of 1.2 million veSTG.
⚖️ Community Debate
While LayerZero argues the acquisition will streamline decision-making and accelerate innovation, some STG holders feel the offer undervalues the project’s revenue potential and past token performance.
If passed, this would mark a major consolidation of LayerZero’s control over its flagship cross-chain bridge — and potentially reshape how the protocol operates going forward.
