LayerZero Proposes $110M Stargate Token Merger in Consolidation Play
Main Idea
The LayerZero Foundation has proposed a $110M merger to convert all Stargate (STG) tokens into ZRO at a fixed rate, consolidating the two protocols' cross-chain infrastructure under a single asset.
Key Points
1. The merger would retire STG as a standalone governance and rewards token, integrating it into the LayerZero ecosystem.
2. Stargate’s bridge revenues, which generated $939,000 in payouts to STG stakers over the past three months, would flow directly to the foundation post-merger.
3. ZRO holders would benefit from potential buybacks funded by Stargate’s revenues, simplifying the system and cutting overlap.
4. The proposal ends Stargate’s fixed-yield staking program, with former STG holders participating in LayerZero’s token economy directly.
5. Both ZRO and STG tokens surged over 20% in the past 24 hours following the announcement.
Description
The LayerZero Foundation has proposed acquiring the closely-related Stargate (STG) and merging its token economy into the LayerZero (ZRO) ecosystem, a move that would consolidate the two protocols’ cross-chain infrastructure under a single asset. Stargate Finance was developed by the same team that created the LayerZero protocol, and the two companies share cofounders. The plan would see all STG tokens converted into ZRO at a fixed rate, effectively retiring STG as a standalone governance and re...
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