- LayerZero acquires Stargate, despite late bids from competitors.
- 95% DAO approval finalizes the significant buyout.
- STG holders transition to ZRO token post-acquisition.
The acquisition underscores LayerZero’s influence in cross-chain interoperability, affecting Stargate’s governance and potentially realigning market dynamics, while facing criticism over the accelerated decision-making process.
LayerZero Labs successfully acquired Stargate Finance, marking one of the largest DAO buyouts in cryptocurrency history, valued between $120 million and $138 million. The acquisition was approved by 95% of the STG token holders. LayerZero secures Stargate in $120M DAO acquisition.
LayerZero faced last-minute bids from Wormhole, Axelar, and Across. Despite concerns over the speed of the process, Stargate DAO voted overwhelmingly to proceed with LayerZero’s offer.
The acquisition means significant changes for existing governance structures. The Stargate DAO will dissolve, with former STG token holders moving from Stargate’s governance token to the LayerZero token (ZRO).
Financial implications include revenue distributions to veSTG holders for six months, and a promise to use future earnings for ZRO buybacks. LayerZero will centralize governance decisions moving forward. Bryan Pellegrino, CEO of LayerZero Labs, emphasized: “This acquisition is a milestone for omnichain interoperability. Stargate users and revenues will be key to advancing LayerZero’s vision.”
The cross-chain interoperability landscape may shift as industry leaders criticize the process transparency. Stakeholders express concerns over the long-term impacts on decentralized finance ecosystems. Some analysts predict these mergers set new precedents for protocol mergers and acquisitions.
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