The proposal put forward by the LayerZero Foundation to acquire Stargate (STG) has officially passed

The LayerZero Foundation’s proposal to acquire cross-chain bridge protocol Stargate and its governance token STG for about $110 million has passed on-chain governance, formally shifting ownership and control of Stargate to the LayerZero ecosystem. The deal dissolves the Stargate DAO, retires the STG token, and allows all STG holders to swap into LayerZero’s ZRO token at a fixed conversion rate. According to the passed proposal and Stargate’s announcement, STG holders can redeem their tokens for ZRO at 1 STG = 0.08634 ZRO via a dedicated redemption contract that will be hosted on the Stargate platform and kept open indefinitely. Locked or staked STG will automatically unlock when the redemption contract goes live, after which users can unstake and convert at any time. As part of the acquisition terms, addresses that held veSTG (vote-escrowed STG) before the initial proposal on August 10 receive 50% of Stargate protocol revenue for six months, with the remaining revenue used to buy back ZRO; after that six‑month window, all excess revenue will go to ZRO buybacks. Operationally, Stargate states that bridging activity, routes, and new asset/chain integrations will continue with “business as usual,” while governance and value accrual pivot from the former Stargate DAO and STG toward the LayerZero Foundation and ZRO token. This vote concludes a contentious process that began when LayerZero formally proposed the acquisition on August 10, offering to purchase all circulating STG at $0.1675 per token—a slight premium to spot—via the STG→ZRO swap. A rival, higher‑priced bid from Wormhole Foundation sought to challenge the deal and argued that LayerZero’s offer undervalued Stargate, but the Stargate DAO ultimately approved the LayerZero proposal by a wide margin of participating votes. The outcome consolidates Stargate’s cross-chain infrastructure under its original technology provider, LayerZero, and folds its token economics and future revenue flows into the broader ZRO-based LayerZero ecosystem.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• LayerZero Foundation Proposes $110 Million Stargate Acquisition ... (unchainedcrypto.com)
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• LayerZero Foundation acquisition of Stargate (STG) (stargate.discourse.group)
• Wormhole Foundation challenges LayerZero's $110M Stargate ... (cryptoslate.com)
• LayerZero, Stargate tokens jump on $110M acquisition plan (tradingview.com)

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