LayerZero Acquires Stargate for $110M After Intense Bid battle
LayerZero has clinched the $110 million acquisition of Stargate following an intense bidding war. The decision came with a resounding 95% approval rate from the Stargate DAO.
Over 15,000 addresses voted, marking one of the highest participation rates in its history. This agreement dissolves the Stargate DAO, shifting governance to the LayerZero (ZRO) ecosystem. LayerZero aims to merge Stargate’s liquidity infrastructure with its broader interoperability vision.
- Stargate stakers receive 50% of protocol revenue.
- The other half goes to ZRO token buybacks.
- STG holders can exchange tokens at a fixed rate: 1 STG = 0.08634 ZRO.
Initially, LayerZero’s proposal faced criticism due to terminating Stargate’s staking program. This prompted rivals like Wormhole, Axelar, and Across to enter the fray. Even with a higher cash offer from Wormhole, LayerZero emerged victorious thanks to strategic alignment over short-term rewards.
LayerZero’s reacquisition of Stargate solidifies its position in the cross-chain messaging market. The focus now turns to how this integration will benefit ZRO holders and Stargate supporters in the long term.
