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Alisa Davidson
Published: August 11, 2025 at 3:07 am Updated: August 11, 2025 at 3:07 am
Edited and fact-checked:
August 11, 2025 at 3:07 am
In Brief
LayerZero Foundation has proposed a $110 million acquisition of Stargate and its STG token, offering a swap to ZRO and seeking community approval through a governance vote.
Organization responsible for managing and supporting the omnichain messaging protocol LayerZero, LayerZero Foundation, has presented a proposal to acquire the Stargate cross-chain bridge along with its STG token for an amount of $110 million. The plan outlines the deactivation of the STG token, with an option for STG holders to exchange their tokens for LayerZero’s native token, ZRO.
As of July 2025, each Stargate token is backed by $0.14444 in value, while its current market price is $0.1637 per token. The offer sets the purchase price at $0.1675 per token.
The proposal specifies that all circulating STG tokens, including those staked or used for voting, will be exchanged for ZRO at a conversion rate of 1 STG to 0.08634 ZRO, representing a valuation of $0.1675 per STG and $1.94 per ZRO. Following the acquisition, Stargate is intended to become more closely integrated into the LayerZero ecosystem, with the potential development of a range of consumer-oriented services that may extend beyond its existing core functions. The Stargate DAO will be dissolved, and any future surplus revenue generated by Stargate will be allocated toward decreasing the circulating supply of ZRO through a buyback initiative.
LayerZero Foundation Opens Governance Vote On Stargate Acquisition And Token Swap Proposal
LayerZero Foundation is seeking a governance vote from STG token holders in accordance with the existing rules of the Stargate Finance DAO. The proposal is currently open for discussion within the Stargate community, and STG holders are invited to submit questions during a seven-day review period.
Following this discussion phase, the proposal will proceed to a Snapshot vote lasting three days, where STG holders can vote either in favor of or against the offer from the LayerZero Foundation. A quorum of 1.2 million veSTG is required, and at least 70% approval is necessary for the vote to pass.
If the proposal is approved, instructions will be provided to STG holders on how to exchange their tokens for ZRO. The LayerZero Foundation will take over ownership and operational responsibilities for all aspects of Stargate Finance. The Stargate protocol will remain fully operational during the transition, ensuring no downtime or changes in functionality for users of the bridge.
Under the approved terms, STG will no longer play any role in Stargate Finance operations. Each STG token will be redeemable for 0.08634 ZRO through a fixed-rate redemption contract, based on ZRO’s market price of $1.94 at the time of the proposal. This swap contract will remain permanently open unless a future closure becomes necessary, in which case advance notice will be issued.
The offer is intended to accelerate the growth of both Stargate and LayerZero, equipping Stargate with resources to execute an ambitious roadmap that extends beyond bridging capabilities, while integrating a strong, revenue-generating protocol more deeply into the LayerZero ecosystem. If passed, the proposal is expected to provide Stargate with a more dedicated technical team, enabling faster development and deployment. The vision centers on a unified token model, a clear operational direction, and a wider scope of objectives.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa Davidson
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
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