LayerZero proposes $110M buyout of Stargate Bridge

The Layerzero Foundation presented a proposal to acquire all the circulating Stargate tokens for around $ 110 million in Zro, aimed at consolidating the control of one of the most used transversal bridges on the market.

August 11 proposal Stargate values (STG) at $ 0.1675, a slight bonus of its pre-annihilation price of $ 0.1637, and would dissolve the Stargate Dao in favor of a unified governance structure under LowerZero (Zro).

Details of the Layerzero buyout proposal

The plan would see all the circulating and marked STGs exchanged against Zro to a fixed ratio of 1 STG = 0.08634 ZRO, on the basis of the market price of $ 1.94 of ZRO at the time of the offer. After completion, STG would no longer play an operational role, and token holders could use a fixed rate contract to buy their tokens indefinitely.

All future revenues of Stargate would go to Zro’s acquisitions as part of the Layerzero plan, gradually reducing the amount of stocks in circulation. Going beyond the bridge in new services facing consumers, integration aims to accelerate the delivery of products.

Stargate, spear In 2022, treated more than $ 70 billion in volume and introduced the Hydra system to rationalize the deployment of liquidity between the chains.

Market and community reaction

After the announcement, STG jumped 12% to 0.188 and Zro increased 15%Increasing the estimated value of the agreement to around $ 127 million. The proposal is now in a seven -day discussion phase on the Stargate Dao forum, after which StG holders will vote. Approval requires support for 70% and a quorum of 1.2 million VESTG.

While Layerzero says that the acquisition will accelerate development And rationalize governance, some STG holders argue that the supply of the bridge income potential and the price of historic tokens. If adopted, the transaction will mark significant consolidation in controlling Layerzero on its flagship bridging infrastructure.