Game-Changing Move: LayerZero Finally Acquires Stargate
After a fierce, last-minute bidding battle, blockchain messaging protocol LayerZero has successfully acquired cross-chain platform Stargate for $110 million. The Stargate DAO approved the acquisition with a 95% majority vote, one of the greatest participation rates in its history. More than 15,000 addresses cast more than 7.5 million veSTG tokens. The DAO was shut down in accordance with the agreement, and the LayerZero ecosystem will now handle governance.
Will Stargate Integration Strengthen ZRO’s Position in the Crypto Market?
For the following six months, Stargate stakers will get half of the protocol revenue under the final deal. LayerZero’s ZRO token buybacks, which will increase token value, will receive the remaining 50%. Furthermore, starting Monday, August 25, holders of STG tokens will be able to swap them for ZRO at a fixed rate of 1 STG = 0.08634 ZRO.
The emphasis now is on how LayerZero will integrate Stargate‘s infrastructure after the transaction is finalized. The main query is whether this action will assist ZRO holders and devoted Stargate fans in the long run.
Stargate DAO Picks LayerZero Despite Higher Rival Offers
Approval was not a simple process. LayerZero‘s initial plan was criticized by the community since it ended Stargate’s staking program and purportedly underestimated its robust revenue creation. A rare multi-protocol bidding war in decentralized finance resulted from rivals taking advantage of this dissatisfaction.
Axelar, Across Protocol, and Wormhole entered the fight right away. Wormhole is even going so far as to give Stargate token holders an all-cash bid of $120 million with accelerated dividends. The Stargate community finally chose LayerZero over the bigger offer because they prioritized strategic alignment above immediate profits.
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