The LayerZero Foundation, which supports the cross-chain interoperability protocol LayerZero, has proposed acquiring the Stargate bridge and its native STG tokens in a deal valued at roughly $110 million. The proposal, unveiled Sunday, aims to fold one of the ecosystem’s most prominent participants directly under the Foundation’s umbrella.
Under the terms, the STG token would be retired, with holders offered an exchange at a fixed ratio of 1 STG for 0.08634 ZRO, LayerZero’s native token, equating to $0.1675 per STG and $1.94 per ZRO at the time of the announcement.
Stargate would operate as part of the LayerZero Foundation, and its decentralized autonomous organization (DAO) would be dissolved.
“This offer is designed to accelerate both Stargate and LayerZero,” the proposal stated, highlighting plans to expand Stargate’s role beyond cross-chain bridging. Bryan Pellegrino, Co-Founder and CEO of LayerZero Labs, wrote on X that the integration would allow “a single stack that anybody integrating within the LayerZero ecosystem can adopt” while helping Stargate deliver on its “ambitious roadmap.”
Stargate, launched by LayerZero in 2022, quickly became a major bridge in the industry, facilitating over $70 billion in cumulative volume. Its STG token peaked at $4.14 shortly after launch, but has since slid to under $0.20 despite the protocol’s adoption.
The market responded positively to the announcement. STG rose about 12% to $0.188, while ZRO climbed around 18% to $2.33. That price action boosted the implied value of the deal to roughly $127 million.
Reactions within the Stargate DAO’s community forum have been mixed. Some members argued the offer undervalues STG, given its historical highs and Stargate’s revenue potential. “The $STG token has been as high as $4 in previous cycles… this offer should be significantly higher,” one user wrote.
Pellegrino defended the proposal as fair based on market conditions at the time but noted that the DAO would ultimately decide its fate. He also confirmed that all LayerZero insiders holding STG would abstain from the vote. The forum will remain open for questions for seven days before a formal decision is made.
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