LayerZero proposes to acquire Stargate for $110 M
Proposal
Acquisition amount: LayerZero Foundation has proposed to acquire Stargate —the cross-chain bridge originally launched by them in 2022— for a value of $110 million.
Token swap: It is planned to withdraw the STG token; holders will be able to exchange their STG for ZRO (native token of LayerZero) at a fixed rate of 1 STG = 0.08634 ZRO, which implies an estimated value of $0.1675 per STG (with ZRO valued at $1.94 at the time of the announcement).
Centralization: The agreement would include the dissolution of the Stargate DAO, transferring governance and operations entirely to LayerZero.
Market and community reactions
Price impact: Following the announcement, the price of STG increased by approximately 12%, while ZRO experienced a rise of about 15–18%, raising the implied value of the agreement to around $127 million.
Community debate: Reactions within the Stargate community have been mixed. Some believe that the offer significantly undervalues STG —which once reached a value of more than $4— and argue that long-term stakers should receive additional compensation. Others, on the other hand, appreciate the integration with LayerZero as an opportunity for faster and more consistent growth.
Decision-making process
Next steps: There is currently a seven-day discussion period in the community forum. A formal vote will then take place on Snapshot, with a minimum quorum of 1.2 million veSTG and a 70% approval threshold.
