The LayerZero Stargate acquisition is a $110 million deal approved by Stargate token holders with ~95% support, returning Stargate to LayerZero control and swapping all circulating STG for ZRO at a fixed 1 STG = 0.08634 ZRO ratio, while rival bidders Wormhole, Axelar and Across signalled last‑minute interest.
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Community approval: ~94.76% of stake weight (over 15,000 addresses) voted to approve LayerZero’s $110M proposal.
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Competitive bids: Wormhole offered $120M cash; Axelar and Across expressed interest pending a competitive process.
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Token mechanics: All circulating STG will be swapped to ZRO at a 1:0.08634 ratio; LayerZero revised revenue share to favor stakers for six months.
LayerZero Stargate acquisition approved by community; STG to ZRO swap set, review details and next steps for STG holders on the official forum.
What is the LayerZero Stargate acquisition?
LayerZero Stargate acquisition is a $110 million transaction approved by Stargate token holders that returns Stargate to LayerZero control. The approved agreement swaps all circulating STG for LayerZero’s ZRO token at a fixed ratio and allocates six months of revenue sharing to stakers.
How did the Stargate community vote and participation look?
The Stargate vote recorded unusually high turnout, with over 15,000 addresses participating. Voting results showed 94.76% of stake (approximately 7.2 million STG) in favor and 5.24% (≈399,400 STG) against, which LayerZero’s co‑founder Bryan Pellegrino described as the platform’s highest participation on record.
The community for the cross-blockchain platform Stargate has greenlit LayerZero’s $110 million acquisition, despite interest from three other rivals.
Blockchain messaging protocol LayerZero has won the bid to acquire crypto protocol Stargate after a shaky first offer and a late four-way bidding war.
Stargate’s community voted on Sunday with a 95% majority to greenlight the LayerZero Foundation’s $110 million acquisition proposal, which it amended after holders of the Stargate (STG) token said the original deal was unfair.
Three of LayerZero’s rivals also put in last-minute bids or intent-to-bids to acquire Stargate, with one bidder, Wormhole, unsuccessfully asking for the vote on LayerZero’s acquisition to be paused.
LayerZero developed and launched Stargate in 2022, and the deal now sees the platform come back under its control. Stargate facilitates transfers across blockchains using liquidity pools that it says allow assets to be transferred natively instead of relying on blockchain bridges, which have a history of being hacked.
Why does LayerZero claim record participation?
LayerZero co-founder and CEO Bryan Pellegrino wrote on X that the Stargate vote had “the highest participation of any vote” in the platform’s history. The voting interface reported participation from over 15,000 addresses.
According to the vote tally, 94.76% (about 7.2 million STG) voted in favor and 5.24% (≈399,400 STG) voted against. Pellegrino noted that roughly 95% of addresses also voted in the affirmative, indicating broad community support across wallet sizes.
How did competing bidders respond to the sale?
Wormhole publicly signalled a competing interest and proposed a $120 million all-cash offer, stating it would pay stakers three times projected six-month revenue immediately as part of its acquisition plan. Wormhole also requested a pause to the LayerZero vote, which was not granted.
Two other cross-chain platforms, Axelar Network and Across Protocol, expressed interest conditionally. Across co‑founder Hart Lambur said his team would consider participating if the process was slowed for proper review. The Axelar Foundation said it would bid if a “competitive process” was created and full options were collected.
What are the agreed token and revenue terms?
LayerZero revised its initial proposal after community feedback. The amended offer gives Stargate stakers half of all top-line revenue for six months, while the remaining half funds a ZRO buyback program. Under the finalized agreement, all circulating STG will be swapped for ZRO at a fixed conversion rate of 1 STG to 0.08634 ZRO.
Frequently Asked Questions
How many addresses participated in the Stargate vote?
Over 15,000 addresses participated, with the vote showing 94.76% of stake weight (≈7.2 million STG) in favor and 5.24% (≈399,400 STG) against the LayerZero proposal.
Will Stargate stakers receive revenue after the acquisition?
Yes. Under the amended agreement, stakers will receive half of all top-line revenue for six months; the other half funds a ZRO buyback program as specified by LayerZero.
Key Takeaways
- Community mandate: Stargate token holders overwhelmingly approved LayerZero’s $110M acquisition.
- Swap mechanics: All circulating STG will convert to ZRO at 1 STG = 0.08634 ZRO.
- Competitive interest: Wormhole, Axelar and Across signalled bids; Wormhole proposed $120M cash.
- Revenue allocation: Stakers get 50% of top-line revenue for six months; remaining revenue used for ZRO buybacks.
Conclusion
The LayerZero Stargate acquisition consolidates Stargate under its original developer with a clear token swap and short-term revenue plan for stakers. The community’s decisive vote and multiple rival bids underline Stargate’s strategic value for cross-chain liquidity protocols. Monitor official Stargate Foundation announcements for exact swap timing and execution steps.
