LayerZero is purchasing Stargate for a hefty $127 million. This move seeks to integrate the platform more deeply into the LayerZero ecosystem and streamline its operations. The transaction includes dissolving Stargate’s decentralized autonomous organization (DAO) and discontinuing the STG token. Holders will receive 0.08634 ZRO tokens in exchange for each STG, valuing their tokens at $0.1675 and the native asset ZRO at $1.94. This value increase is reflected in the rising market price of both STG (up nearly 12% to $0.188) and ZRO (around 15% higher). The deal, which initially was valued at $110 million, has now reached around $127 million. LayerZero CEO Bryan Pellegrino believes this will accelerate Stargate’s expansion plans, moving beyond cross-chain bridging to a broader range of blockchain infrastructure. He envisions a unified tech stack for partners integrating with LayerZero. 5 The Stargate platform, launched by LayerZero in 2022, quickly became one of the most popular crypto bridges, processing over $70 billion in total volume. Despite its success, STG’s token value has fallen from its all-time high of $4.14 to under $0.20 before the acquisition announcement. The proposal for this acquisition is being discussed on Stargate DAO’s community forum and has been met with mixed reactions. Some STG holders believe the offer undervalues their tokens considering Stargate’s revenue and potential, but LayerZero insiders holding STG will abstain from voting to avoid conflicts of interest. If approved, this move would be a major restructuring for Stargate, ending its DAO governance and positioning it as a wholly owned LayerZero Foundation protocol. This integration could strengthen interoperability offerings and expand LayerZero’s presence in the cross-chain infrastructure market. This information is for informational purposes only and should not be considered financial advice. Coindoo does not endorse or recommend any specific investment strategy or cryptocurrency. Always do your own research and consult with a licensed financial advisor before making any decisions.