ZRO token jumps 26% after LayerZero proposes $110M Stargate acquisition

Generated by AI AgentCoin World
Monday, Aug 11, 2025 9:06 pm ET1min read
STG
--
Aime RobotAime Summary

- LayerZero’s $110M Stargate acquisition plan triggered a 26% ZRO token surge, with ZRO hitting $2.30 and 540% higher trading volume.

- The proposal replaces STG tokens at 0.08634 ZRO, dissolving Stargate DAO to unify governance and streamline cross-chain operations under LayerZero.

- STG rose 20% despite its planned retirement, while critics argue the fixed exchange rate undervalues holdings and removes staking rewards.

- Supporters highlight efficiency gains and brand consolidation, but the 70% supermajority vote requirement reflects mixed community sentiment.

LayerZero Foundation’s $110 million proposal to acquire its

Stargate
cross-chain bridge triggered a 26% surge in the ZRO token within 24 hours. The plan, posted on Stargate DAO’s forum, aims to dissolve the Stargate DAO and phase out the STG token through a fixed-rate redemption contract. Under the proposal, each STG will be exchanged for 0.08634 ZRO, consolidating the ecosystem under a single governance and token model while maintaining uninterrupted bridge operations [1].

Post-announcement, ZRO climbed to $2.30, with trading volume surging 540%. Analysts speculate that breaking above $2.80 could push the price toward the $3 level. The STG token also rose over 20% in the same period, reaching $0.20, as investors reacted favorably to the move despite the token’s planned retirement [1].

The acquisition is framed as a strategic alignment to unify governance, improve technical efficiency, and streamline development. Stargate, launched by LayerZero in 2022, has processed over $70 billion in cross-chain transactions but has struggled to translate this activity into sustained STG token growth. LayerZero CEO Bryan Pellegrino described the merger as a “single unified direction” for both projects, allowing Stargate to benefit from LayerZero’s broader infrastructure [1]. Supporters argue that merging tokens will reduce inefficiencies and consolidate brand recognition in a competitive market.

However, the proposal has faced mixed reactions from the STG community. Some stakeholders argue that the fixed exchange rate undervalues their holdings and removes existing staking rewards. The plan requires a 70% supermajority vote from the Stargate DAO to proceed, and discussions remain active within the community. If approved, the LayerZero–Stargate merger could reshape the cross-chain interoperability landscape and position ZRO for further gains [1].

Source: [1] [ZRO Price Soars 26% as LayerZero Unveils $110M Stargate Acquisition Plan](https://www.newsbtc.com/news/zro-price-soars-26-as-layerzero-unveils-110m-stargate-acquisition-plan/)