The supporters of the cross-chain communication protocol LayerZero, the LayerZero Foundation, proposed to acquire the crypto protocol Stargate for $110 million, driving up the token prices of both projects.
LayerZero announced its plan in the Stargate forum, stating that the proposal aims to accelerate the development of Stargate and LayerZero, and provide broader development resources for Stargate.
LayerZero will exchange its token LayerZero (ZRO) for Stargate Finance (STG) tokens, with an exchange rate of 1 STG for 0.08634 ZRO. If approved by the community, Stargate will be reintegrated into LayerZero's system.
Stargate can transfer digital assets across chains using liquidity pools, avoiding reliance on historically vulnerable blockchain bridges.
The rise of STG and ZRO tokens.
Affected by LayerZero's acquisition proposal, the related tokens of both platforms rose on the same day.
LayerZero's token rose over 23% within 24 hours, trading at $2.44, making it one of the biggest winners in the market, according to CoinGecko.
Stargate's token rose approximately 16.5%, reaching a price of 19 cents.
LayerZero CEO supports the plan's 'unified direction'.
Bryan Pellegrino, co-founder and CEO of LayerZero, stated on X that he hopes to 'accelerate and deliver quickly.' He believes that this proposal will provide more resources for Stargate and offer a unified direction for the community and token holders.
STG holders are dissatisfied with the plan.
However, the feedback from Stargate's token holders regarding the plan has mostly been negative, arguing that the proposal is unfair and does not allow for token staking.
One user mentioned, 'The proposal is not attractive enough, and STG holders cannot enjoy any benefits.' Other users stated that LayerZero needs to significantly increase its offer.
Netizens also added, 'Managing two tokens is constantly troublesome, integrating the tokens is reasonable, but the current proposal is not favorable for holders to earn staking rewards.' Stargate stated that comments on the proposal will be open for the next seven days, followed by a vote by the holders.
