LayerZero Proposes $110M Stargate Acquisition Amid Token Decline

• Lyla Velez
• August 11, 2025
• Deals
• 0 Comments

LayerZero Foundation has proposed a $110 million acquisition of the Stargate bridge protocol in response to the struggling STG token.

The acquisition proposal significantly impacts the LayerZero ecosystem, as it promises to expedite Stargate’s development and affect the dynamics of cross-chain liquidity assets.

LayerZero Foundation’s $110 million offer addresses the Stargate bridge protocol’s framework amid the declining value of the STG token. The proposition seeks to integrate Stargate more closely with LayerZero’s ecosystem, notably enhancing its development trajectory. Led by Bryan Pellegrino, LayerZero Labs aims to create a consolidated structure by acquiring the Stargate DAO governance and its assets.

Bryan Pellegrino, Co-founder & CEO, LayerZero Labs, stated, “We want to move faster. We aim to create a single structure that can integrate with the LayerZero ecosystem while helping Stargate implement its ambitious roadmap.”

STG token holders will be affected, with proposals for token conversion at fixed rates highlighting the underlying asset changes. After the announcement, the STG token experienced a price surge, reflecting market responses to potential structural shifts.
Stargate Eco Twitter post

The proposal’s financial scope is extensive, foreseeing the termination of STG tokens and paving the way for ZRO token expansion. Community discussions reveal mixed reactions regarding the proposal’s viability for STG holders, as broader market implications are yet to unfold.

This acquisition might set a precedent akin to other industry consolidations, impacting cross-chain protocols’ governance and liquidity. Insights into the potential effects indicate heightened governance within LayerZero’s ecosystem while underscoring significant asset redistribution.