LayerZero has proposed a $110 million acquisition of Stargate, aiming to enhance both platforms. However, the Stargate community has mixed feelings about the deal.
-
LayerZero’s proposal includes swapping Stargate’s STG tokens for its own ZRO tokens at a rate of 1 STG to 0.08634 ZRO.
-
Both STG and ZRO tokens saw significant price increases following the announcement.
-
Stargate’s community is divided, with some expressing dissatisfaction over the terms of the deal.
LayerZero proposes a $110 million acquisition of Stargate, aiming to enhance both platforms despite mixed reactions from the Stargate community.
| Token | Current Price | 24-Hour Change |
|---|---|---|
| LayerZero (ZRO) | $2.44 | +23% |
| Stargate (STG) | $0.19 | +16.5% |
What is LayerZero’s Proposal for Stargate?
LayerZero has proposed a $110 million acquisition of Stargate, aiming to enhance both platforms. The deal involves swapping Stargate’s STG tokens for LayerZero’s ZRO tokens at a rate of 1 STG to 0.08634 ZRO.
How Will This Acquisition Impact Token Holders?
The proposal has led to a significant increase in both STG and ZRO token prices. LayerZero’s token surged over 23% in the past 24 hours, while Stargate’s token saw a 16.5% increase. However, the community’s response has been mixed, with some holders expressing concerns about the fairness of the offer.
Frequently Asked Questions
What is the current price of STG and ZRO tokens?
As of now, LayerZero’s ZRO token is priced at $2.44, while Stargate’s STG token is trading at approximately $0.19.
How has the community reacted to the acquisition proposal?
The Stargate community has expressed mixed feelings, with some users finding the terms unattractive and calling for a better offer.
Key Takeaways
- LayerZero’s Proposal: A $110 million acquisition aimed at enhancing both platforms.
- Market Reaction: Both STG and ZRO tokens experienced significant price increases.
- Community Concerns: Mixed feedback from Stargate holders regarding the fairness of the offer.
Conclusion
LayerZero’s proposed acquisition of Stargate for $110 million aims to unify and enhance both platforms. While the market has responded positively, the Stargate community remains divided on the proposal’s terms. Stakeholders are encouraged to participate in the upcoming vote to shape the future of the Stargate protocol.
-
LayerZero has pitched a $110 million all-token deal to buy Stargate, but not everyone from the crypto protocol’s community is happy with the proposal.
-
The LayerZero Foundation, which backs the cross-blockchain messaging protocol LayerZero, has put forward a proposal to acquire the crypto protocol Stargate for $110 million, which has boosted the tokens tied to both projects.
-
LayerZero laid out the plan in a post to Stargate’s forum on Sunday, pitching the offer as “designed to accelerate both Stargate and LayerZero, giving Stargate the resources to ship on an aggressive roadmap that expands its prerogative outside of bridging.”
LayerZero proposes a $110 million acquisition of Stargate, aiming to enhance both platforms despite mixed reactions from the Stargate community.
STG, ZRO tokens rise on plan
The tokens tied to the platforms both gained double-digit percentage points on the day on LayerZero’s proposal.
LayerZero’s token has gained over 23% in the past 24 hours to trade at $2.44, making it one of the biggest gainers in the crypto market in the past day, per CoinGecko.
Stargate’s token, meanwhile, saw 24-hour gains of around 16.5% to just over 19 cents, extending its rally over the past week.
Both tokens are down significantly from their peaks, with ZRO down 67% from its December high of $7.47, while STG has fallen over 95% from its mid-2022 peak of $4.14.
LayerZero boss hails plan as “unified direction”
LayerZero co-founder and CEO Bryan Pellegrino posted on X that he wants “to move faster, ship faster.”
He said the proposal would “help Stargate execute on its ambitious roadmap while creating a single stack that anybody integrating within the [LayerZero] ecosystem can adopt.”
He added it would also give STG holders “a more liquid token” and would give the Stargate community “a clear path forward with significantly more resources and a single unified direction.”
STG tokenholders say plan “not attractive at all”
However, the deal saw generally negative feedback from holders of Stargate’s token, with some saying they understand the need for a swap, but the deal pitched is unfair and won’t allow for staking.
“The offers are not attractive at all. They do not offer any advantages to STG holders, and STG’s revenue-sharing system is not available on ZRO. We will only be able to hold on to our tokens,” one Stargate user wrote.
The user added that LayerZero “needs to raise its offer significantly,” while others said the offer was “fundamentally flawed” and agreed the offer should be higher, possibly a 1:1 token swap, due to “the amount of revenue Stargate makes and the potential for the protocol.”
Another user said they saw the need for the swap as “managing two tokens is a pain and causes more distractions than necessary,” while another said it “makes sense to merge” the tokens, but agreed the deal was unfair as it meant STG holders would no longer be able to stake their tokens for rewards.
Stargate said the proposal will be available for comment for the next seven days. The platform’s decentralized autonomous organization, made up of tokenholders, is then set to vote on the deal.
Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs — Inside story
