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LayerZero proposes $110M acquisition of Stargate, offering 1 STG = 0.08634 ZRO.
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Deal would dissolve Stargate DAO, unifying governance under LayerZero.
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STG price jumped 12% to $0.188, ZRO rose 15%, lifting deal value to ~$127M.
The LayerZero Foundation has submitted a proposal on August 11, 2025 to acquire all circulating Stargate Finance (STG) tokens for approximately $110 million in ZRO, in a move that could dissolve the Stargate DAO and centralize governance under LayerZero.
The proposal values STG at $0.1675, slightly above its pre-announcement price of $0.1637. The exchange ratio is set at 1 STG = 0.08634 ZRO, based on ZRO’s $1.94 market price at the time of the offer. All circulating and staked STG would be swapped for ZRO, after which STG would cease to have any operational role. Holders could redeem tokens indefinitely via a fixed-rate contract.
Under the plan, all future Stargate earnings would fund ZRO buybacks, reducing circulating supply. LayerZero aims to leverage the integration to expand beyond bridging and accelerate delivery of consumer-facing products.Launched in 2022, Stargate has processed over $70 billion in volume and developed the Hydra system to optimize liquidity deployment across chains.
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Market Reaction
Following the announcement, STG surged 12% to $0.188, while ZRO rose 15%, lifting the deal’s estimated value to around $127 million. The proposal has entered a seven-day discussion phase on the Stargate DAO forum, with voting to follow. Approval requires 70% support and a quorum of 1.2 million veSTG.
While LayerZero argues the acquisition will speed up development and unify governance, some STG holders believe the offer undervalues the bridge’s revenue potential and past market performance. If approved, this would mark a major consolidation in LayerZero’s control over its flagship bridging infrastructure.
The chart illustrates the sharp price reaction of STG and ZRO following LayerZero’s $110 million buyout proposal announced on August 11, 2025. Both assets experienced immediate upward momentum, with ZRO climbing nearly 30% and STG gaining over 16% in the 24-hour period after the news. The vertical annotation highlights the announcement date, marking a clear inflection point where market sentiment shifted, driving a sustained rally over the subsequent sessions.
