LayerZero proposes to acquire Stargate for $127 million, triggering a dramatic price surge and a governance dispute within the DAO (Background: Is the DeFi version of MicroStrategy born? A $2 million capital gamble and a boardroom battle) (Additional Context: Ten questions and answers about Ethereum's version of MicroStrategy: Analysis of four major US companies betting on ETH logic and holdings) The cross-chain messaging protocol leader LayerZero Foundation recently proposed a total token acquisition worth approximately $127 million, targeting its own cross-chain liquidity protocol Stargate, which it incubated in 2022. The official emphasized that this move could create a "single stack" and accelerate the advancement of the technical blueprint; however, after the announcement, ZRO and STG tokens surged, and intense debates over price, fairness, and decentralization erupted within the Stargate DAO. Understanding the Acquisition Proposal LayerZero posted the acquisition document on the Stargate forum on October 1, 2023, offering 1 STG for 0.08634 ZRO, initially estimated at $110 million, which later rose to about $127 million due to the token price increase. CEO Bryan Pellegrino stated, "We want to act faster and deliver faster." He believes that the merger will allow all LayerZero users to operate on the same technical stack, enhancing efficiency and consolidating market leadership. Immediate Price Fluctuations On the day the proposal was announced, the price of ZRO surged over 23% to approximately $2.44, while STG also jumped 16.5% to about $0.19, indicating that short-term funds held optimistic expectations for the integration of the two proposals. According to CoinGecko data, both tokens are still far from their historical highs: ZRO is about 67% below its peak of $7.47, and STG has fallen 95% from its high of $4.14. This serves as a reminder to investors that the crypto market is often driven by news and sentiment, and long-term value ultimately returns to technological implementation and demand growth. Three Major Focus Points of Community Backlash The price bonus has not quelled the concerns of DAO members. First, the exchange ratio has been criticized as "not attractive," with forum users stating, "The proposal is not appealing at all." Some have even demanded a 1:1 exchange, believing Stargate's revenue potential has been underestimated. Second, the quarterly bridging fee originally allocated to STG stakers, approximately $939,000, will be redirected to repurchase ZRO after the acquisition, potentially eliminating staking rewards. Third, and most controversially, governance rights. If the transaction goes through, Stargate DAO will be dissolved, and decision-making power will be concentrated in the LayerZero Foundation, putting the core value of decentralization to the test. While some members believe that having both tokens is "troublesome," there is a general expectation for fairer terms. The Next Question in the DeFi Consolidation Wave Regardless of the final voting result, this acquisition reflects that the DeFi ecosystem is entering a period of resource consolidation. By acquiring, scaling up, and reducing fragmentation, it is expected to accelerate the popularity of cross-chain infrastructure; conversely, the concentration of power and regulatory gray areas may dilute the momentum for innovation. If LayerZero successfully integrates Stargate, it could compete with rivals such as Wormhole, continuing to advance the cross-chain interoperability landscape. However, this also poses a challenge to the industry: how to find a new balance between efficiency and decentralization amid rapid growth and community autonomy? After a 7-day comment period, Stargate DAO is entering a critical voting phase. The final decision will not only determine the direction of the two major protocols but also set a precedent for DeFi consolidation models, impacting the development of the cross-chain ecosystem for years to come.

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