LayerZero Plans $110M Stargate Acquisition Token Swap

The LayerZero Foundation has proposed a $110 million acquisition of the Stargate cross-chain bridge, aiming to consolidate the two projects under its native ZRO token by phasing out the STG token at a fixed exchange rate of 1 STG for 0.08634 ZRO. The acquisition would dissolve the Stargate DAO, transferring operational control to LayerZero and redirecting future Stargate revenues toward buying back ZRO tokens, with a seven-day community discussion and a three-day vote pending approval. The proposal has triggered positive market reactions, with STG rising about 12% and ZRO about 15%, increasing the deal’s implied value to approximately $127 million. LayerZero CEO Bryan Pellegrino highlighted that the acquisition will accelerate development, streamline cross-chain operations, and create a unified ecosystem for developers, although some Stargate community members criticize the swap rate as undervaluing STG and express concerns over changes to the fee-sharing model. Stargate, launched in 2022, has processed over $70 billion in transactions, making it one of the most heavily used blockchain bridges, and the consolidation reflects broader industry trends toward strategic integration to foster long-term ecosystem growth. The acquisition, if approved by a 70% quorum of veSTG holders, will maintain Stargate’s functionality uninterrupted while enhancing interoperability within the LayerZero infrastructure.