Foundation proposes acquiring Stargate for $110 million, exchanging STG tokens for ZRO tokens
Headline: LayerZero's $110 Million Acquisition Proposal for Stargate Cross-Chain Bridge Remains Contested
The tech world is abuzz with news of the LayerZero Foundation's proposed acquisition of the Stargate cross-chain bridge. The offer, valued at $110 million, is currently under consideration, but faces opposition from rival project Wormhole.
According to the proposal, all STG tokens, including staked and voting tokens, would be exchangeable for LayerZero's native token, ZRO, at a fixed rate of 1 STG for 0.08634 ZRO. This represents an offer price of $0.1675 per STG. However, if the acquisition goes through, STG holders would forfeit their staking rewards as revenue would be redirected towards ZRO token buybacks.
The announcement has sparked a surge in the STG token, which saw a 14% increase in value after the proposal was introduced. Yet, despite this boost, the STG token is still trading 95% below its all-time high. A quorum of 1.2 million vote-escrowed STG (veSTG) tokens is required for the vote to be valid, and the snapshot vote will last for three days.
The LayerZero Foundation expressed their enthusiasm for the acquisition, stating, "We want to move faster, ship incredible product and win. Let's bring the bridge home." They aim to leverage Stargate to expand cross-chain interoperability and integrate revenue streams more broadly across their messaging volume.
Stargate's economic significance is evident in its treasury, which holds approximately $92 million in stablecoins and ether, and its impressive bridge volume surpassing $70 billion and peaking at $4 billion in monthly bridging.
Wormhole, a competing cross-chain bridge project, has challenged this bid, claiming the $110 million offer undervalues Stargate. They have requested a voting pause to prepare a higher counteroffer. The final outcome of the vote remains pending, with Wormhole seeking more time to compete.
If approved, the acquisition could reshape the cross-chain bridge landscape by consolidating protocol governance and resources under LayerZero. A minimum threshold of 70% in favor is needed for the proposal to pass, and the decision ultimately lies with the token holders.
[1] Unchained News (2025). LayerZero Foundation Proposes $110 Million Acquisition of Stargate Cross-Chain Bridge. Retrieved from https://unchained-news.com/layerzero-foundation-proposes-110-million-acquisition-of-stargate-cross-chain-bridge/
[2] CoinDesk (2025). Wormhole Challenges LayerZero's $110 Million Offer for Stargate. Retrieved from https://www.coindesk.com/wormhole-challenges-layerzeros-110-million-offer-for-stargate/
[3] The Block (2025). LayerZero's Acquisition of Stargate: What You Need to Know. Retrieved from https://www.theblockcrypto.com/linked/117648/layerzeros-acquisition-of-stargate-what-you-need-to-know
[4] Decrypt (2025). Stargate Acquisition: What Does it Mean for STG and ZRO Holders? Retrieved from https://decrypt.co/78824/stargate-acquisition-what-does-it-mean-for-stg-and-zro-holders
[5] Cointelegraph (2025). LayerZero's Expansion Plans: Cross-Chain Interoperability and Messaging Volume Integration. Retrieved from https://cointelegraph.com/news/layerzeros-expansion-plans-cross-chain-interoperability-and-messaging-volume-integration
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