The acquisition was approved through community voting. Over 94% of Stargate DAO participants supported the measure. Notably, participation was unusually high, with more than 15,000 members depositing over 7.5 million STG tokens.
The approval of the Stargate DAO dissolves the organization and initiates the migration of STG tokens to ZRO at a fixed rate of 1 STG = 0.08634 ZRO. Both liquid and deposited balances will be convertible.
LayerZero stated that Stargate would allocate 50% of its gross revenue to its holders for six months following the approval of the vote. The remaining half will be allocated to a buyback program designed to reduce the circulating supply of ZRO.
However, once the six-month period ends, all future excess revenue will be allocated to the buyback program, further reducing the supply of ZRO.
Meanwhile, the Stargate bridge will remain fully operational, ensuring that users continue to access cross-chain transfers without interruption.
LayerZero noted that the integration would expand the Stargate product suite beyond the bridge and stablecoin liquidity to include swaps, vaults, and other financial infrastructure.
Stargate has been fundamental for cross-chain liquidity since its launch in 2021. Originally developed within LayerZero before becoming a DAO, the protocol has processed over $70 billion across 50 blockchains.
Its absorption marks one of the first nine-figure acquisitions of a decentralized organization. The deal highlights how token holder governance can yield results comparable to traditional corporate transactions.
LayerZero co-founder and CEO Bryan Pellegrino framed the agreement as a natural extension of the company’s long-term roadmap.
It stated that Stargate would serve as a gateway for end users and as a revenue-generating asset. Additionally, it will help LayerZero accelerate the speed at which value can circulate between blockchains.
ZRO rose by 4.7% to $2.17, while STG rose by 4.9% to $0.19 immediately after the announcement. However, these gains were subsequently reversed, returning both assets to their previous levels.
Still, the temporary increase underscored a renewed confidence in the combined platform's role in advancing blockchain interoperability, despite broader volatility in digital assets.
