The move aims to bring Stargate fully under LayerZero’s control, streamline its operations, and integrate it deeper into the LayerZero ecosystem.

The plan includes dissolving Stargate’s decentralized autonomous organization (DAO) and discontinuing the STG token. Under the proposal, holders could swap each STG for 0.08634 ZRO, LayerZero’s native asset, valuing STG at $0.1675 and ZRO at $1.94 when the offer was first made. With both tokens climbing after the announcement — STG up nearly 12% to $0.188 and ZRO up around 15% — the deal’s value has increased from $110 million to roughly $127 million.

Accelerating Stargate’s Roadmap

LayerZero CEO Bryan Pellegrino said the acquisition would allow Stargate to move faster on its expansion plans, extending beyond cross-chain bridging to a broader range of blockchain infrastructure. The idea, he explained, is to create a unified tech stack that partners integrating with LayerZero can adopt seamlessly.

Stargate, launched by LayerZero in 2022, quickly became one of the most used bridges in the crypto space, processing more than $70 billion in total volume. Despite its operational success, the STG token has struggled, falling from its all-time high of $4.14 to under $0.20 before the deal was announced.

Mixed Community Reaction

The proposal, now live on Stargate DAO’s community forum for a seven-day discussion period, has drawn mixed feedback. Some STG holders argue the offer undervalues the token given the project’s revenue and market potential. Pellegrino responded that the DAO will ultimately decide the outcome, and LayerZero insiders holding STG will abstain from the vote to avoid conflicts of interest.

If approved, the acquisition would mark a major restructuring for Stargate, ending its DAO governance and positioning it as a wholly owned LayerZero Foundation protocol. For both projects, the integration could strengthen interoperability offerings and expand LayerZero’s presence in the cross-chain infrastructure market.

The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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Filed under: Bitcoin - @ August 11, 2025 3:01 am