LayerZero Proposes $110M Acquisition of Stargate, Plans to Retire STG Token

The LayerZero Foundation has proposed a $110 million acquisition of the Stargate cross-chain bridge from the Stargate DAO, in a move that would see the STG token phased out and swapped for LayerZero’s native ZRO token.

The proposal, published Sunday, sets a 70% supermajority approval threshold from STG holders to pass. If approved, Stargate’s independent governance would be dissolved, the DAO shut down, and holders would be able to swap 1 STG for 0.08634 ZRO, valuing STG at $0.1675 based on ZRO’s $1.94 price at the time of announcement.

Following the news, STG rallied 12% to $0.188, while ZRO rose 15%, pushing the implied value of the deal to around $127 million.

Why LayerZero Wants Stargate In-House

LayerZero CEO Bryan Pellegrino said the deal would give Stargate “the resources to ship on an aggressive roadmap” and integrate it more tightly into the LayerZero ecosystem. Stargate, launched by LayerZero in 2022, is one of the most used blockchain bridges, with over $70 billion in transfers facilitated since launch.

The acquisition would consolidate Stargate’s user base, brand, and transaction volume under a single LayerZero stack, a strategy similar to Binance’s acquisition of Trust Wallet and FTX’s purchase of Blockfolio, both of which funneled liquidity and users toward parent tokens.

Under the proposed terms, all future surplus revenue from Stargate currently around $939,000 per quarter would be used to buy back ZRO from the market, rather than paying staking rewards to STG holders.

Community Response and Concerns

Some DAO participants have criticized the offer, arguing that Stargate’s revenues and growth potential warrant a higher valuation. Others see value in trading a standalone bridge token for a stake in ZRO, betting on LayerZero’s long-term dominance in cross-chain infrastructure.

The governance process will follow DAO norms: a seven-day discussion period on the Stargate forum, followed by a three-day Snapshot vote. The proposal requires at least 1.2 million veSTG in quorum and 70% approval to pass. If successful, the token swap will be available indefinitely via a redemption contract, avoiding any forced timelines.

Supporters argue that integration could speed up product delivery and strengthen security, while critics warn that the deal could strip value from STG holders at bear-market prices.

Biggest Crypto Acquistions In 2025

Announce / Close Date (2025)	Acquirer	Target	What it is	Deal Value (USD)	Status
May 8 (announced)	Coinbase	Deribit	Crypto derivatives exchange	$2.9B	Pending regulatory approvals
Mar 20 (announced)	Kraken	NinjaTrader	U.S. retail futures trading platform	$1.5B	Pending/expected to close H1–H2
Apr 8 (announced)	Ripple	Hidden Road	Multi-asset prime broker	$1.25B	Pending regulatory approvals
Jun 2 (closed)	Robinhood	Bitstamp	Global crypto exchange	≈$200M	Closed
Aug 7 (announced)	Ripple	Rail	Stablecoin payments / banking infra	$200M	Expected to close Q4
May 13 (announced)	Robinhood	WonderFi	Canadian crypto platform	≈US$179M (C$250M)	Expected to close H2