LayerZero Proposes $110M Stargate Acquisition With 1:0.08634 Token Swap

The LayerZero Foundation has proposed a $110 million acquisition of Stargate, the cross-chain bridge protocol it co-developed in 2022. The proposal, outlined on the Stargate governance forum on August 10, 2025, involves retiring the STG token and replacing it with ZRO at a fixed 1:0.08634 exchange rate. This move would effectively dissolve the Stargate DAO and transfer governance and revenue streams to the ZRO ecosystem. Future bridge revenues will be allocated toward ZRO buybacks, reinforcing the token’s role as the sole governance instrument in the merged system [10].

The acquisition has triggered immediate market reactions. Both STG and ZRO tokens experienced sharp price increases following the announcement. STG surged approximately 12% to $0.188, while ZRO climbed 15%. The 24-hour trading volume for ZRO increased by 540%, indicating strong investor interest [8]. The proposed swap rate values each STG at $0.1675, slightly above its pre-announcement price. This has led to mixed reactions from the community. Some view the offer as undervaluing Stargate’s potential, while others see it as a strategic move to streamline operations and reduce token fragmentation [10].

STG holders will vote on the deal through a formal governance process. Approval requires 70% support and a minimum of 1.2 million veSTG tokens. The voting process includes a seven-day discussion phase followed by a three-day voting window. To avoid conflicts of interest, LayerZero employees who hold STG tokens will abstain from voting [10]. If approved, the transition will be seamless for users, with operational changes occurring behind the scenes. LayerZero has emphasized the importance of maintaining service continuity during the integration [10].

The merger is positioned as a critical step in consolidating cross-chain infrastructure. Stargate, which has facilitated over $70 billion in transactions since its launch, will be fully integrated into LayerZero’s ecosystem, enabling developers to access a unified platform for cross-chain applications. This aligns with broader industry trends of protocols strengthening their competitive positions through strategic mergers [10].

LayerZero CEO Bryan Pellegrino emphasized the goal of accelerating development and enhancing security through the merged platform, stating the team aims to “move faster, ship faster.” The final vote will conclude on August 17, 2025, after which the Stargate community will determine the acquisition’s fate [10].

Sources:

[1] Cointelegraph - https://cointelegraph.com/news/layerzero-stargate-tokens-rise-110m-acquisition-proposal

[2] XT.com - https://www.xt.com/en/blog/post/zro-price-soars-26-as-layerzero-unveils-110m-stargate-acquisition-plan

[3] AInvest - https://www.ainvest.com/news/zro-token-jumps-26-layerzero-proposes-110m-stargate-acquisition-2508/

[4] Coin - https://coinedition.com/layerzero-stargate-stg-buyout-proposal-tokens-react-surge/

[5] Bitrue - https://www.bitrue.com/blog/layerzero-acquires-stargate-bridge-110m

[6] CoinCentral - https://coincentral.com/layerzero-moves-to-absorb-stargate-in-110m-token-swap-community-pushes-back/

[7] AInvest - https://www.ainvest.com/news/layerzero-offers-110m-stargate-finance-token-swap-deal-2508/

[8] Crypto - https://crypto.news/layerzero-110m-stargate-acquisition-stg-token-2025/

[9] CoinLaw - https://coinlaw.io/layerzero-stargate-110m-token-swap/

[10] Brave - https://bravenewcoin.com/insights/layerzero-proposes-110-million-token-deal-to-buy-back-stargate-bridge