Ethereum News Today: LayerZero Acquires Stargate for $110M in Centralized Push ZRO Up 22% Following $110M Stargate Buyout Proposal

LayerZero Foundation has initiated a $110 million acquisition of the Stargate cross-chain bridge and its native STG token, aiming to deepen integration within its cross-chain infrastructure. The proposal, announced in late July 2025, allows STG holders to swap their tokens for ZRO at a fixed exchange rate of 1 STG for 0.08634 ZRO, based on a ZRO price of $1.94 at the time of proposal [1]. This swap mechanism offers a direct path for STG holders to transition their holdings to ZRO, aligning incentives and governance under a single token structure [2].

The LayerZero Foundation highlighted that this move is designed to streamline governance and improve the operational efficiency of its cross-chain ecosystem. Stargate, which functions as a liquidity bridge on the LayerZero infrastructure, will continue to operate without disruption during the transition, with all existing functionalities and user experiences remaining unchanged [2]. The acquisition also centralizes control over Stargate’s infrastructure under LayerZero, aligning with its broader goal of strengthening its role in cross-chain interoperability [3].

The proposal requires a 70% majority approval from STG holders, with voting anticipated in the coming weeks. If approved, the Stargate DAO will be dissolved, and all STG tokens will be retired in favor of ZRO [4]. This marks a significant shift from Stargate’s original vision as a decentralized protocol, raising questions about the future of community governance in the blockchain space.

Market reactions have been positive, with both ZRO and STG experiencing notable price increases. ZRO rose over 22% in 24 hours, reaching $2.30, while STG climbed by more than 15%, trading at approximately $0.1940 [4]. The token swap also ties future bridge revenue to ZRO buybacks, creating a direct financial incentive for ZRO holders [5]. Analysts have interpreted the move as a potential catalyst for LayerZero’s long-term growth, especially as the broader market has shown signs of recovery, with Bitcoin and Ethereum both achieving recent price highs [9].

Stargate, launched by LayerZero in 2022, has maintained a leading position in cross-chain transfers, with over $70 billion in total volume. However, the STG token has underperformed, losing nearly half its value over the past year. The decision to phase out STG is seen as a strategic move to realign token value with protocol usage [6]. Consolidating Stargate under LayerZero is also expected to accelerate development efforts by combining resources and technical capabilities [7].

The acquisition occurs amid rising optimism in the crypto market, with ZRO’s recent trading volume surging by 540% in 24 hours, reflecting strong investor interest in the proposal [4]. If ZRO continues to gain momentum and breaches the $2.80 level, it may target the psychological $3 threshold in the near term [9].

Source:

[1] LayerZero Foundation acquisition of Stargate (STG) - General, https://stargate.discourse.group/t/layerzero-foundation-acquisition-of-stargate-stg/682

[2] LayerZero Proposes $110M Stargate Token Buyout, https://crypto.news/layerzero-110m-stargate-acquisition-stg-token-2025/

[3] LayerZero to Acquire Stargate for $110M in Centralized Push, https://www.ainvest.com/news/layerzero-acquire-stargate-110m-centralized-push-2508

[4] ZRO price jumps 22% as LayerZero offers $110M to ... , https://invezz.com/news/2025/08/11/zro-price-jumps-22-as-layerzero-offers-110m-to-acquire-stargate-bridge/

[5] tk ⛽️ on X: "layerzero proposes $110m buy-out of stargate ... , https://x.com/tomkysar/status/195460150****646925

[6] LayerZero Targets Stargate: Can ZRO Save STG Price in ... , https://99bitcoins.com/news/presales/layerzero-110m-stargate-acquisition-proposal-can-zro-token-swap-rescue-stg-price/

[7] LayerZero Foundation has proposed a $110 million acquisition of the Stargate bridge, https://kanalcoin.com/layerzero-stargate-bridge-acquisition/

[9] Ethereum hits highest level since 2021 on regulatory clarity ..., https://learn.bybit.com/en/daily-bits/ethereum-hits-highest-level-since-2021