LayerZero to Acquire Stargate for $110M in Centralized Push

Generated by AI AgentCoin World
Sunday, Aug 10, 2025 10:06 pm ET1min read
ETH
--
STG
--
Aime RobotAime Summary

- LayerZero Foundation proposes $110M acquisition of Stargate cross-chain bridge and STG token to consolidate cross-chain infrastructure leadership.

- Plan includes dissolving Stargate DAO, centralizing governance, and swapping STG for ZRO at 1:0.08634 ratio to align ecosystem interests.

- Acquisition requires Stargate DAO approval and could set DeFi consolidation precedents while potentially stabilizing STG's value through token integration.

- Move reflects broader blockchain industry trends toward centralized control and ecosystem integration for streamlined cross-chain development.

LayerZero Foundation has proposed a $110 million acquisition of the

Stargate
cross-chain bridge and its native STG token, aiming to consolidate its leadership in the cross-chain infrastructure space[1][2][4]. The plan includes the dissolution of the Stargate DAO and the transfer of all governance and operational responsibilities to the LayerZero Foundation[3][5]. This marks a return to centralized control of a project that had previously been managed by a decentralized governance model[1][6].

Current STG token holders would be eligible to exchange their tokens for ZRO, the native token of LayerZero, with the exchange rate set at 1 STG for 0.08634 ZRO[4][6]. This token swap is intended to align the interests of stakeholders within the broader LayerZero ecosystem and could influence market dynamics in the cross-chain space[2][4].

The acquisition proposal was first announced in mid-June 2025, with exchanges such as AInvest and MEXC reporting the development[1][3].

Binance
, 99Bitcoins, and RootData have since covered the strategic significance of the move[2][4][5]. Stargate was originally launched by LayerZero in 2022, and this acquisition represents a strategic reassertion of control over a key project[1][6].

The proposal is still subject to approval by the Stargate DAO and requires further clarification regarding the execution timeline and technical details of the token swap[1][5]. If approved, the deal would represent one of the largest buyouts in the DeFi space and could set a precedent for future integrations and consolidations within the blockchain industry[1][5].

Some analysts have speculated that the token swap could help stabilize the value of STG, but these projections remain unconfirmed[7]. The acquisition reflects a broader trend of token consolidation and ecosystem integration, with the potential to streamline development and resource allocation for Stargate’s expansion[2][5].

The proposal has gained traction across blockchain-focused social platforms, with WuBlockchain and The Block highlighting the significance of the deal amid ongoing challenges for the STG token[6][8]. The move underscores LayerZero’s continued efforts to strengthen its position in cross-chain infrastructure by bringing key projects under centralized control.

Source:

[1] LayerZero Proposes $110M Stargate Bridge Acquisition ... (https://www.ainvest.com/news/layerzero-proposes-110m-stargate-bridge-acquisition-1-stg-0-08634-zro-swap-2508/)

[2] LayerZero Foundation proposes to acquire Stargate cross ... (https://www.binance.com/en/square/post/28149****19265)

[3] LayerZero Foundation proposes to acquire Stargate cross- ... (https://www.mexc.com/news/layerzero-foundation-proposes-to-acquire-stargate-cross-chain-bridge-and-its-token-stg-for-110-million/64543)

[4] 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/)

[5] LayerZero Foundation proposes $110 million acquisition of ... (https://www.rootdata.com/news/150321)

[6] Wu Blockchain - X (https://x.com/WuBlockchain/status/1954635316838678721)

[8] The Block on X: "LayerZero Foundation proposes $110 million ... (https://x.com/TheBlock__/status/19546150****5794696)