LayerZero Acquires Stargate for $110M in ZRO Token Swap Boosting STG and ZRO by 12 and 15 Percent

Generated by AI AgentCoin World
Monday, Aug 11, 2025 1:51 am ET1min read
Aime RobotAime Summary

- LayerZero acquires Stargate for $110M via 1:0.08634 STG-to-ZRO token swap, dissolving Stargate DAO and transferring governance.

- STG price jumps 12% to $0.188 post-announcement, while ZRO rises 15%, with mixed community reactions to valuation fairness.

- Integration aims to unify cross-chain operations, boost LayerZero's infrastructure dominance, and channel Stargate revenues into ZRO buybacks.

- The move signals centralized governance trends in blockchain, with long-term impacts on token valuation, innovation pace, and community engagement.

LayerZero Foundation has announced a $110 million acquisition of the

Stargate
cross-chain bridge and its native token,
STG
. The transaction involves retiring the STG token and exchanging it for ZRO, LayerZero’s native token, at a fixed 1:0.08634 ratio. This equates to $0.1675 per STG token, or $1.94 per ZRO token. As part of the deal, the Stargate DAO will be dissolved, and governance will be transferred to LayerZero. The integration aims to create a unified ecosystem that streamlines cross-chain operations and enhances LayerZero’s competitive position in the blockchain infrastructure space [1].

The Stargate bridge, originally launched by LayerZero in 2022, has become one of the most widely used cross-chain protocols, with over $70 billion in transaction volume to date. However, the STG token has seen a significant decline in value, dropping from a peak of $4.14 to under $0.20. The acquisition announcement led to an immediate 12% increase in the price of STG to $0.188, while ZRO rose by 15%. The combined market value of the swap now totals approximately $127 million [1].

According to Bryan Pellegrino, co-founder and CEO of LayerZero Labs, the acquisition is intended to provide Stargate with the resources needed to expand beyond bridging and pursue a more ambitious roadmap. The move also aims to integrate a high-traffic, revenue-generating protocol into LayerZero’s ecosystem. Pellegrino emphasized the need for speed and integration, stating that the goal is to build a single, unified structure that supports the broader LayerZero ecosystem while enabling Stargate to pursue its strategic objectives [1].

The Stargate acquisition marks a significant shift in cross-chain infrastructure strategies. By consolidating operations, LayerZero is strengthening its position in a rapidly evolving market. The proposal is currently open for public discussion on the Stargate DAO forum for seven days, with mixed reactions from the community. Some stakeholders see the deal as a fair valuation of STG, while others argue it underrepresents the token’s potential. The dissolution of the Stargate DAO also signals a broader trend toward centralized governance within the blockchain industry [1].

The integration of Stargate into LayerZero’s ecosystem is expected to have immediate and long-term effects on both token holders and developers. The fixed exchange rate for STG to ZRO creates a clear transition path for investors, while Stargate’s future revenues will be allocated to ZRO buybacks. This unified financial strategy may influence the valuation of ZRO over time. Additionally, the move is likely to affect community engagement, governance structures, and the pace of innovation within the LayerZero network [1].

Source: [1] Development of the Day: One Altcoin Offered to Buy Out... (https://cryptonews.net/news/altcoins/31411030/)