The LayerZero Foundation has submitted a $110 million acquisition proposal to the Stargate DAO to absorb the Stargate cross-chain bridge ecosystem. Under the terms, Stargate's native token STG would be phased out and swapped for LayerZero's ZRO at a fixed rate of 0.08634 ZRO per STG – valuing STG at $0.1675 and ZRO at $1.94 based on announcement prices.
The deal requires 70% approval from STG holders and a quorum of 1.2 million veSTG votes. If passed, Stargate would be fully integrated into the LayerZero Foundation, dissolving the Stargate DAO. LayerZero Labs CEO Bryan Pellegrino emphasized this would accelerate development, stating: "We want to move faster and create a single stack that anybody integrating within the LayerZero ecosystem can adopt."
Stargate, launched by LayerZero in 2022, has processed over $70 billion in cross-chain transfers. Despite this volume, STG plummeted from its $4.14 peak to below $0.20 pre-announcement. News of the proposal triggered immediate market reactions: STG surged 12% to $0.188, while ZRO jumped 15%, lifting the deal's implied value to $127 million.
Future Stargate surplus revenue would fund ZRO buybacks under the proposal, creating long-term value accrual. However, some community members contest the valuation, arguing Stargate's revenue potential warrants a higher offer. A seven-day discussion period precedes a three-day Snapshot vote, with token redemption available indefinitely post-approval via a dedicated contract.