The decentralized governance organization Stargate DAO has voted overwhelmingly to be acquired by the LayerZero Foundation, the organization behind the LayerZero interoperability protocol. This decision was made despite last-minute, competing offers from other blockchain companies.
The acquisition was approved with a nearly 95% vote in favor. Under the terms of the deal, the Stargate DAO will be dissolved, and holders of its native STG token will be able to swap their tokens for LayerZero's native ZRO token at a rate of 1 STG to 0.08634 ZRO. The entire deal is valued at about $120 million.
Initially, a point of contention was the loss of yield income for those who had locked their STG tokens for voting power (veSTG). To address this, the LayerZero Foundation adjusted its offer, promising veSTG holders 50% of Stargate's revenue for six months after the deal closes. The remaining revenue, and eventually all of it, will be used to buy and "burn" (permanently remove from circulation) ZRO tokens.
The vote's final days were complicated by a last-minute, rival $120 million cash offer from the Wormhole Foundation, a competitor of LayerZero. Other protocols, including Axelar and Across, also expressed interest in bidding, urging Stargate to pause the vote to properly consider all proposals. However, the vote proceeded and was finalized on Saturday.
LayerZero Labs CEO Bryan Pellegrino stated that the acquisition provides the LayerZero ecosystem with "a clear access point to the end-consumer" and an "immediate revenue-generating asset." LayerZero has also highlighted the deal as a landmark event, calling it potentially "the first private acquisition of a DAO over $100M."
Stargate, originally launched by LayerZero in 2022, is widely used but its STG token has underperformed compared to other popular bridge tokens. Following the news, LayerZero’s ZRO token saw a modest price increase.
August 2025, Cryptoniteuae