LayerZero plans to spend $110 million to acquire all circulating Tokens of StarGate, accelerating the governance centralization of the cross-chain leader.

On August 11, the LayerZero Foundation proposed a major proposal for the cross-chain interoperability protocol, planning to fully acquire all circulating tokens of the liquidity bridging protocol StarGate Finance (STG) with ZRO tokens valued at approximately $110 million. The acquisition aims to integrate top market cross-chain bridge resources and incorporate the StarGate DAO governance structure into the unified LayerZero system. According to the proposal terms, STG holders can exchange tokens at a fixed ratio of 1 STG = 0.08634 ZRO, with a slight premium over the market price of STG before the announcement. If the proposal is approved, STG tokens will cease actual operations, and LayerZero will have full control over this top cross-chain infrastructure with a processing volume exceeding $70 billion.

【Acquisition Plan Details: Fixed Ratio Exchange + ZRO Buyback Mechanism】 The fully funded acquisition plan proposed by the LayerZero Foundation values StarGate Finance at $0.1675 per STG share, representing a premium of approximately 2.3% over the STG price of $0.1637 before the proposal announcement. The specific exchange mechanism is as follows: all circulating and staked STG Tokens will be exchanged for ZRO at a fixed ratio of 1 STG = 0.08634 ZRO (based on the market price of ZRO at $1.94 at the time of the proposal).

After the transaction is completed, the STG Token will no longer bear any protocol functions, and holders can exchange ZRO indefinitely through a fixed exchange rate contract at any time. According to LayerZero's integration plan, all protocol revenue generated by StarGate in the future will be used to repurchase ZRO in the open market, gradually reducing the circulation of ZRO. This acquisition is not limited to the integration of bridge functions, but also plans to expand new services aimed at users, to accelerate product iteration and ecological synergy. Since its launch in 2022, StarGate has processed cross-chain transactions exceeding $70 billion, and its innovative Hydra system has significantly improved the efficiency of multi-chain liquidity deployment.

【Market Reaction and Voting Process: STG Soars 12%, Community Valuation Controversy Emerges】 After the acquisition proposal was announced, the market reacted quickly: the price of STG surged by 12% to $0.188, and ZRO rose by 15%, bringing the trading valuation to approximately $127 million. Currently, the proposal has entered a 7-day community discussion phase on the StarGate DAO forum, after which the voting process for STG holders will begin. The proposal must meet dual conditions for approval: support rate of no less than 70% and the number of participating veSTG reaching the legal threshold of 1.2 million tokens.

LayerZero emphasizes that this acquisition will accelerate protocol development and simplify governance processes, but some STG holders question whether the offer underestimates StarGate's long-term revenue potential and historical token value. If the vote passes, this move will mark an unprecedented concentration of control by LayerZero over its flagship cross-chain infrastructure, reshaping the competitive landscape of the cross-chain space.

[Conclusion: Opportunities and Challenges under Mega Integration] LayerZero's acquisition of StarGate for over $100 million is a key signal of resource integration and centralized governance in the cross-chain space. For STG holders, the fixed ratio token swap scheme offers a short-term liquidity premium, but also means sacrificing future earnings from independent project development; for the LayerZero ecosystem, this move will strengthen its control over core bridging facilities and enhance token value capture through the ZRO buyback mechanism. However, the community's disputes over valuation rationality and the shift in decentralized governance models still need to be fully deliberated during the voting phase. The outcome of this acquisition will not only affect the ecological development of both parties but will also provide a model reference for top protocol integration in the industry.