LayerZero Proposes $110 Million Acquisition of Stargate Amid Mixed Reactions from Community

Key Points

1. LayerZero's proposal involves swapping Stargate’s STG tokens for LayerZero’s ZRO tokens at a rate of 1 STG to 0.08634 ZRO.

2. Following the announcement, STG and ZRO tokens saw significant price increases: ZRO surged 23% to $2.44, and STG rose 16.5% to $0.19.

3. LayerZero CEO Bryan Pellegrino stated the acquisition would provide a 'unified direction' and enhance Stargate’s roadmap, offering STG holders a more liquid token.

4. Some Stargate tokenholders criticized the deal as unfair, citing concerns over the swap ratio, loss of staking rewards, and lack of revenue-sharing for ZRO holders.

5. The Stargate decentralized autonomous organization (DAO) will vote on the proposal, with some community members calling for a better offer.