LayerZero, Stargate tokens jump on $110M acquisition plan

Key Points

1. LayerZero Foundation proposed a $110 million all-token deal to acquire Stargate, offering a swap rate of 1 STG to 0.08634 ZRO.

2. The announcement caused STG to gain over 23% in 24 hours and ZRO to rally nearly 40% over the past week, though both tokens remain significantly below their all-time highs.

3. LayerZero CEO Bryan Pellegrino stated the deal aims to unify direction, provide liquidity for STG holders, and accelerate both projects.

4. Stargate tokenholders criticized the proposal as unfair, citing concerns over staking rewards and revenue-sharing, with some demanding a higher swap ratio.

5. The deal will be subject to a vote by Stargate’s decentralized autonomous organization (DAO) composed of tokenholders.