LayerZero Foundation Proposes $110M Acquisition of Stargate Tokens in ZRO Swap

11 August 2025

The LayerZero Foundation has unveiled a bold $110 million proposal to acquire all circulating Stargate (STG) tokens, converting them into LayerZero's native ZRO tokens.f99dfc This strategic move aims to unify governance and strengthen oversight of the widely used Stargate cross-chain bridge, marking a significant consolidation in the blockchain interoperability space.

Details of the Proposed Token Swap

Under the plan, STG holders would receive 0.08634 ZRO for each STG token, based on a valuation of $0.1675 per STG and $1.94 per ZRO at the time of the offer.cc87ea If approved, this would effectively retire the STG token, dissolve the Stargate DAO, and integrate its operations fully into LayerZero's ecosystem.7dd0f4 The acquisition is designed to streamline decision-making and enhance the bridge's efficiency for cross-chain transfers.

Market Reaction and Implications

Following the announcement, both ZRO and STG tokens surged—ZRO climbing 23% and STG gaining 16.5%—reflecting investor optimism about the merger's potential.602f1f However, not all community members are on board, with concerns raised over the deal's fairness and the loss of Stargate's independent governance.28cf99

This development highlights the evolving landscape of DeFi and cross-chain protocols, potentially setting a precedent for future consolidations in the crypto sector.

🚀 What do you think—game-changer for LayerZero or a risky move? Share your thoughts! #LayerZero #STARGATE #ZRO #STG #BlockchainNews