Stargate DAO Urges Binance and Circle for Counter Offers Amid LayerZero Buyout Bid.

A proposal on the Stargate governance forum is seeking to halt negotiations over the sale of the crypto bridge until counter offers are solicited and new processes are established to ensure neutrality. The proposal comes after the LayerZero Foundation offered to buy Stargate for around $138 million, and recommends retaining an independent investment bank and legal counsel, as well as soliciting bids from Binance, Circle, and other crypto firms. The relationship between Stargate and LayerZero raises concerns over a potential conflict of interest.

In a significant development within the crypto ecosystem, a proposal on the Stargate governance forum has been introduced to halt negotiations over the sale of the Stargate bridge until counter offers are solicited and new processes are established to ensure neutrality. This move comes in response to the LayerZero Foundation's unsolicited bid to acquire Stargate for around $138 million [1].

The proposal, submitted by a pseudonymous governance participant named Stargatefan, recommends several measures to address potential conflicts of interest and ensure a fair process. Key points include appointing a neutral representative for the sale, retaining an independent investment bank and legal counsel, and soliciting counter bids from prominent crypto firms such as Binance, Circle, Solana, Tether, and other major venture capital funds [2]. The goal is to ensure that the acquisition offer from LayerZero is competitive and that the community feels the process is fair.

The proposal also highlights concerns over a potential conflict of interest between Stargate and LayerZero, both of which were founded by LayerZero Labs. Many members of the LayerZero Foundation and LayerZero Labs own significant amounts of Stargate’s STG token, raising eyebrows about the fairness of the acquisition bid [3].

Despite the pushback, some Stargate DAO members support the acquisition, arguing that it would simplify the relationship between the two projects and provide Stargate with more resources to pursue a broader mandate. However, even these supporters question the adequacy of the $138 million valuation, noting that the STG token has reached an all-time high of $4.14 and has significant revenue potential [2].

The emergency proposal, if it moves forward to a vote and passes, could help alleviate concerns over a conflict of interest and the protocol’s value. The Stargate DAO will now consider the proposal and engage in a process to solicit counter offers, aiming to ensure a fair and transparent acquisition.

References:
[1] https://finance.yahoo.com/news/stargate-dao-proposal-looks-binance-154916604.html
[2] https://www.tradingview.com/news/the_block:d84df3cba094b:0-layerzero-foundation-proposes-110-million-acquisition-of-stargate-bridge-as-token-struggles/
[3] https://www.dlnews.com/articles/defi/stargate-dao-proposal-looks-to-binance-circle-for-counter-offers-amid-layerzero-acquisition-bid/