Blockchain protocol LayerZero has formally submitted a proposal to acquire cross-chain bridge solution Stargate in a deal valued at $110 million. The merger plan would see Stargate’s native STG tokens exchanged for LayerZero’s ZRO tokens at a fixed swap ratio of 1 STG to 0.08634 ZRO.
Market reaction to the announcement showed immediate positive momentum, with ZRO token price rising 23% to $2.44 and STG climbing 16.5% to $0.19.
LayerZero CEO Bryan Pellegrino framed the acquisition as strategic alignment that would provide unified direction and enhanced roadmap development for Stargate. He emphasized that STG holders would gain exposure to a more liquid token through the merger.
Despite leadership endorsements, segments of the Stargate community voiced criticism. Tokenholders raised concerns about perceived unfairness in the swap ratio, elimination of staking reward mechanisms, and the absence of revenue-sharing provisions for ZRO holders.
The final decision rests with Stargate’s decentralized autonomous organization (DAO), which will conduct a governance vote on the proposal. Several community members have publicly advocated for negotiating improved terms prior to the vote.