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4h ago

LayerZero Opens Stargate DAO Discussion on $127 Million Acquisition Proposal

The proposal lets holders convert STG to ZRO at a fixed ratio during a seven-day discussion before a vote requiring 70% support

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Layerzero proposes $110m stargate token merger in consolidation play

Overview

  • LayerZero Foundation has offered to swap all circulating and staked STG tokens for ZRO at 1 STG = 0.08634 ZRO, valuing the deal at $0.1675 per STG
  • The transaction’s estimated value jumped from $110 million to about $127 million after STG and ZRO prices rose over 12% and 15% respectively
  • Under the plan, Stargate DAO would be dissolved and its governance and revenue streams fully integrated into the LayerZero Foundation
  • Stargate token holders have seven days to debate the merger on the DAO forum before a formal vote that needs 70% approval and at least 1.2 million veSTG to pass
  • Community reactions are split, with some STG holders saying the swap undervalues the bridge’s revenue potential and eliminates existing staking rewards