Wormhole bid for Stargate is a competing acquisition offer intended to top LayerZero’s $110 million proposal; Wormhole asked for a five-business-day vote pause to complete due diligence and prepare a higher, market-reflective bid that better compensates STG tokenholders.
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Wormhole requests a 5-business-day vote pause to finalize a higher bid.
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LayerZero updated its offer to include six months of revenue sharing for staked STG holders.
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Tokens W, STG and ZRO rose as markets reacted; CoinGecko provided price movement data.
Wormhole bid for Stargate — timely update on the bidding war, vote pause request, and tokenholder impacts. Read the full breakdown and next steps.
Wormhole will bid against LayerZero to acquire the cross-chain transfer platform Stargate, pressing for a more competitive sale after LayerZero’s initial $110 million offer was criticized by the community.
What is Wormhole’s bid for Stargate?
Wormhole bid for Stargate refers to the Wormhole Foundation’s intent to submit a materially higher acquisition offer for Stargate than LayerZero’s $110 million proposal. Wormhole also requested a five-business-day pause of the community vote to complete due diligence and finalize terms that it says better reflect Stargate’s value.
How did Wormhole justify requesting a vote pause?
Wormhole argued the LayerZero offer “doesn’t create a compelling offer” and that the community deserves a competitive process. It asked for asset lists, financials since launch, user and traffic metrics, liabilities and details on any lawsuits or regulatory issues to inform a higher bid.
Source: Wormhole Foundation
How does LayerZero’s updated bid affect STG holders?
LayerZero updated its proposal to include a six-month revenue-sharing period for staked STG holders — paying 50% of top-line Stargate revenue to stakers and allocating the remaining 50% to buy back LayerZero’s ZRO token. The update prompted 88.6% of voting STG holders (6.6 million tokens) to support the proposal in the recent vote.
What are the market reactions and token impacts?
Tokens linked to Wormhole (W), Stargate (STG) and LayerZero (ZRO) all saw intraday gains on the news. According to CoinGecko price data, W rose ~6.3% to just over $0.08, STG gained ~6% to highs near $0.18 before cooling, and ZRO increased ~3.6% to $2. Concurrently, BTC and ETH were up ~1% and ~5.2% respectively.
Frequently Asked Questions
Will Wormhole submit a higher monetary bid for Stargate?
Wormhole publicly stated it is “prepared to submit a meaningfully higher bid,” aiming to offer better valuation and terms for STG holders. The foundation requested documentation to finalize a competitive offer during the requested pause.
Can the Stargate vote be paused and what happens next?
The community can choose to pause the vote; Wormhole asked for five business days to complete due diligence and negotiate terms. If granted, Wormhole would present its finalized offer; otherwise, LayerZero’s updated proposal may proceed.
Key Takeaways
- Competitive bid: Wormhole announced intent to outbid LayerZero and requested a five-business-day vote pause.
- LayerZero update: New terms include six months of revenue sharing for staked STG holders and a proposed STG-to-ZRO swap.
- Market response: W, STG and ZRO tokens rose on the news; price data referenced from CoinGecko.
Conclusion
The Wormhole bid for Stargate has escalated a potential bidding war with LayerZero, centering on valuation, tokenholder compensation and governance timing. STG holders, market participants and on-chain observers should watch for Wormhole’s finalized offer and any governance vote changes, which will determine Stargate’s next ownership and revenue path.
