The LayerZero Foundation has announced a proposal to acquire the Stargate cross-chain bridge and its native STG token in a deal valued at $110 million. If approved, the acquisition would see Stargate fully integrated into the LayerZero ecosystem, and its decentralized autonomous organization (DAO) dissolved.
Under the terms of the deal, all STG tokens would be deactivated. Holders would be able to swap their STG for LayerZero's native token, ZRO, at a fixed rate of 1 STG for 0.08634 ZRO. This swap rate values each STG token at approximately $0.1675.According to LayerZero, the acquisition is intended to accelerate Stargate's development roadmap by providing it with a more dedicated set of resources and a unified strategic direction. The move would also deepen Stargate's integration into the broader LayerZero ecosystem.
Following the announcement, the market reacted with an initial rally for both tokens. The price of STG jumped 12% to $0.188, while ZRO saw an even larger increase. This caused the dollar value of the deal to rise from the initial $110 million to approximately $127 million.
Despite the rally, the proposal has faced some pushback from the Stargate community. The proposal is currently under a 7-day review on the Stargate DAO forum, where some members have voiced their dissatisfaction with the token swap offer, arguing that it undervalues Stargate's historical price and revenue potential. LayerZero has stated that insiders who hold STG tokens will abstain from the upcoming vote to avoid any conflicts of interest. The proposal requires a 70% approval from STG token holders to pass.
August 2025, Cryptoniteuae