|
Getting your Trinity Audio player ready...
|
The LayerZero Foundation has proposed a $110 million all-token deal to acquire Stargate, the cross-chain liquidity protocol it originally launched in 2022. The plan has sent both LayerZero (ZRO) and Stargate Finance (STG) tokens sharply higher—but not everyone in the Stargate community is happy.
Details of the Token Swap Deal
In a post to Stargate’s governance forum, LayerZero pitched a token swap that would exchange STG for ZRO at a rate of 1 STG to 0.08634 ZRO. The proposal aims to “accelerate both Stargate and LayerZero” by giving Stargate more resources to expand beyond bridging. If approved, Stargate would once again operate under LayerZero’s umbrella, streamlining its technology stack for ecosystem partners.
CEO Bryan Pellegrino said the plan would help Stargate “execute on its ambitious roadmap” and give tokenholders a “more liquid asset” alongside a unified vision for the project.
Market Reaction: Double-Digit Gains for Both Tokens
Following the announcement, ZRO surged over 23% in 24 hours to $2.44, while STG jumped around 16.5% to $0.19. Both, however, remain far below their all-time highs—ZRO is down 67% from December’s $7.47 peak, and STG has lost over 95% since mid-2022.
The rally marks one of the strongest short-term performances in the crypto market this week, according to CoinGecko data.
Also Read: Sygnum Bank Integrates SUI Token to Drive Institutional Adoption and Ecosystem Growth
Community Pushback: “Not Attractive at All”
Despite the price boost, several STG holders criticized the deal’s terms, calling the swap ratio “unfair” and objecting to the removal of STG’s revenue-sharing and staking features. Some community members suggested a 1:1 swap, citing Stargate’s revenue and growth potential, while others agreed on the need to merge tokens but urged LayerZero to “raise its offer significantly.”
The proposal is now open for public comment for seven days, after which Stargate’s decentralized autonomous organization (DAO) will vote on whether to approve the acquisition.
LayerZero’s acquisition pitch has united markets but divided the community. The coming DAO vote will determine whether this deal accelerates Stargate’s growth—or stalls under governance resistance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
The latest Crypto News on Blockchain, Crypto, NFTs, Bitcoin, DOGE, XRP, Cardano IOTA, SHIB, ETH, DeFi, and the Metaverse.
