Key Takeaways:
- LayerZero proposed a $110M all-token deal to acquire Stargate, offering a 1 STG to 0.08634 ZRO swap.
- News of the proposal boosted ZRO by over 23% and STG by 16.5%, though both remain far below ATHs.
- Stargate’s community is split, with some calling the offer unattractive and pushing for better terms.
LayerZero Foundation, developer of the cross-blockchain messaging protocol LayerZero, has proposed a $110 million all-token acquisition of Stargate, a protocol it originally launched in 2022.
Stargate enables native asset transfers across blockchains using liquidity pools, avoiding the risks of traditional blockchain bridges.
The LayerZero Foundation has proposed an acquisition of Stargate (STG).
— LayerZero (@LayerZero_Core) August 10, 2025
Bring the Bridge Home. pic.twitter.com/OfB4eV2r96
The plan would see LayerZero swap its ZRO token (valued at $2.51) for Stargate’s STG token (valued at $0.1998) at a rate of 1 STG to 0.08634 ZRO.
If approved, the deal would bring Stargate back under LayerZero’s control.
Following the announcement, ZRO surged over 23% in 24 hours to $2.44, while STG gained 16.5% to just above $0.19 – though both remain far below their all-time highs.
LayerZero CEO Bryan Pellegrino said the merger would accelerate development, unify the ecosystem, and give STG holders a more liquid token and greater resources.
However, some community members criticized the offer as undervaluing STG, noting the loss of its revenue-sharing model and staking rewards.
Others argued for a higher or 1:1 swap ratio. The proposal remains open for discussion for seven days before a tokenholder vote.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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