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LayerZero Foundation has put forward a proposal to acquire all circulating Stargate tokens for roughly $110 million in $ZRO, aiming to consolidate control over one of the most-used cross-chain bridges in the market.
- LayerZero proposes $110M acquisition of all Stargate tokens, offering $0.1675 per $STG.
- Deal would dissolve Stargate DAO, integrate governance under LayerZero, and use revenue for $ZRO buybacks.
- $STG rose 12% and $ZRO 15% after the announcement; community vote requires 70% approval.
The Aug. 11 proposal values Stargate ($STG) at $0.1675, a slight premium to its pre-announcement price of $0.1637, and would dissolve the Stargate DAO in favor of a unified governance structure under LayerZero ($ZRO).
LayerZero buyout proposal details
The plan would see all circulating and staked $STG swapped for $ZRO at a fixed ratio of 1 $STG = 0.08634 $ZRO, based on $ZRO’s $1.94 market price at the time of the offer. After completion, $STG would no longer play any operational role, and token holders would be able to use a fixed-rate contract to redeem their tokens indefinitely.
All future Stargate earnings would go toward $ZRO buybacks under LayerZero’s plan, gradually lowering the amount of stock in circulation. By going beyond bridging into new consumer-facing services, the integration aims to speed up product delivery.
Stargate, launched in 2022, has processed over $70 billion in volume and introduced the Hydra system to streamline liquidity deployment across chains.
Market and community reaction
Following the announcement, $STG surged 12% to $0.188 and $ZRO rose 15%, increasing the deal’s estimated value to about $127 million. The proposal is now in a seven-day discussion phase on the Stargate DAO forum, after which $STG holders will vote. Approval requires 70% support and a quorum of 1.2 million veSTG.
While LayerZero says the acquisition will accelerate development and streamline governance, some $STG holders argue the offer undervalues the bridge’s revenue potential and historical token price. If passed, the transaction would mark a significant consolidation in LayerZero’s control over its flagship bridging infrastructure.