Stargate approves $110M LayerZero buyout with 94.76% stakeholder support

The Stargate community has overwhelmingly approved LayerZero’s $110 million acquisition proposal, with approximately 94.76% of stake weight—equivalent to around 7.2 million STG tokens—cast in favor. Over 15,000 addresses participated in the vote, marking what LayerZero co-founder Bryan Pellegrino described as the highest participation in the platform’s history [1]. The approval enables a token swap where all circulating STG will be exchanged for LayerZero’s ZRO token at a fixed ratio of 1 STG to 0.08634 ZRO, with the swap expected to conclude by August 25, 2025.

LayerZero revised its initial offer in response to community feedback, incorporating a six-month revenue-sharing plan that allocates half of top-line revenue to stakers and the remaining half to a ZRO buyback program [2]. This adjustment was aimed at addressing concerns about the original terms and ensuring fair compensation for token holders during the transition period.

Despite LayerZero’s successful bid, the auction process was not without competition. Rival protocols, including Wormhole, Axelar, and Across, expressed interest in acquiring Stargate. Wormhole submitted a $120 million all-cash offer, while Axelar and Across indicated conditional participation, pending a structured competitive process [3]. Wormhole also attempted to delay the LayerZero vote, but the request was denied. The presence of multiple bidders highlights Stargate’s strategic value in the cross-chain space, particularly in its ability to facilitate native asset transfers without relying on traditional blockchain bridges, which have historically been vulnerable to attacks [4].

The acquisition marks a return to LayerZero for Stargate, a cross-blockchain platform it originally developed in 2022. The deal was amended after initial concerns about fairness were raised by the community, underscoring the importance of stakeholder engagement in decentralized governance. Pellegrino noted that the high participation rate across various wallet sizes signaled strong community alignment with the proposal [5].

The STG to ZRO swap is expected to be executed according to the outlined timeline, with additional details and next steps available on the official Stargate Foundation forum. The revised agreement ensures that stakers will retain a significant role in the platform’s short-term revenue distribution, offering a buffer against potential volatility in token value [6]. The acquisition consolidates Stargate under its original developers, aligning with broader industry trends of project re-centralization through community-led governance.

[1] LayerZero Stargate acquisition approved by community; STG to ZRO swap set, review details and next steps for STG holders on the official forum.

[2] LayerZero revised its initial proposal after community feedback. The amended offer gives Stargate stakers half of all top-line revenue for six months.

[3] Wormhole publicly signalled a competing interest and proposed a $120 million all-cash offer.

[4] Stargate facilitates transfers across blockchains using liquidity pools that it says allow assets to be transferred natively instead of relying on blockchain bridges.

[5] According to the vote tally, 94.76% (about 7.2 million STG) voted in favor and 5.24% (≈399,400 STG) voted against.

[6] Under the finalized agreement, stakers will receive half of all top-line revenue for six months.

Source: [1] Stargate Community Approves LayerZero’s $110M Bid, STG Swap Could Return Token to LayerZero August 25, 2025 (https://en.coinotag.com/stargate-community-approves-layerzeros-110m-bid-stg-swap-could-return-token-to-layerzero/)