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- LayerZero Foundation has offered $110 million to acquire Stargate DAO and its bridge.
- The deal would swap STG tokens for ZRO at a fixed rate and dissolve the DAO.
- A governance vote will decide the proposal’s future.
LayerZero Foundation has revealed plans for a $110 million acquisition aimed at taking full control of the Stargate bridge and its STG tokens. The proposal also calls for the dissolution of the Stargate DAO and a token swap that would replace STG with LayerZero’s native token, ZRO.
The exchange rate is 1 STG for 0.08634 ZRO and valuates at $0.1675 per STG using the current $1.94 price of ZRO. Stargate has been operational for three years and remains the busiest bridge of the industry.
It has facilitated more than $70 billion in combined volume and caters to prominent omnichain fungible tokens. Its Hydra function has also enabled quick and easy deployment of liquidity between chains. LayerZero feels the bridge has untapped room and aims to incorporate it further into its native ecosystem.
LayerZero to Remove STG from Platform Operations
If the deal goes through, all circulating STG, including staked and voting tokens, will be swapped for ZRO. This move will remove STG from the platform’s operations entirely. Future excess revenue from Stargate will be used to buy back and burn ZRO, reducing its circulating supply over time.
LayerZero will maintain Stargate’s existing services uninterrupted through the transition. The fundamental purpose of the bridge will persist, but the new consumer-facing products will be built on top of it as intended by the founders.
These might allow Stargate’s use for more than cross-chain transfers and become more of a multipurpose tool within the LayerZero network. The fixed-price redemption contract of STG holders will always be left open and will always operate as a possible exchange at will. In the event that a contract must close, advance notice will be provided.
Stargate Community Opens Proposal for Review
The proposal is up for discussion on the Stargate community forum. STG token holders will have seven days of review and commentary before voting commences. Voting will be conducted over three days on the Snapshot platform.
For the proposal to pass, it must meet a quorum of 1.2 million veSTG and secure at least 70% approval. If approved, LayerZero will take over all Stargate Finance operations. The DAO will be dissolved, and all governance responsibilities will shift to LayerZero.
This acquisition, if successful, could reshape the future of cross-chain infrastructure by consolidating two of the sector’s most active projects under one structure. It would also mark one of the largest token buyouts in the blockchain space this year.
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