LayerZero has regained control of cross-chain protocol Stargate, following a community vote that concluded in favor of the acquisition. The governance process saw high participation, with 94.76% of voting tokens backing the revised deal.
Community Approves Revised Offer
Stargate's community voted on Sunday after LayerZero submitted an amended proposal. The new terms came in response to concerns from Stargate (STG) token holders, who argued the initial offer did not provide enough value. The updated deal grants Stargate stakers half of the platform's top-line revenue for six months, while the other half will be used to buy back LayerZero's native token (ZRO).
Competing Bids Add Pressure
The acquisition process intensified after three rival cross-chain protocols�Wormhole, Axelar Network, and Across Protocol�signaled interest in acquiring Stargate. Wormhole submitted a $120 million cash offer, promising substantial upfront payments to STG stakers. Both Axelar and Across urged for a competitive bidding process and asked to pause the ongoing vote, but Stargate's foundation declined, maintaining that all interested parties were given due diligence opportunities.
Majority Support and Token Swap
The vote saw participation from over 15,000 addresses, with nearly 95% supporting the acquisition. All circulating STG tokens will be converted to LayerZero�s ZRO tokens at a set ratio of 1 STG to 0.08634 ZRO under the final agreement.
Background and Next Steps
LayerZero originally developed Stargate in 2022, before the platform became independent. Stargate enables cross-chain asset transfers using liquidity pools, providing an alternative to traditional blockchain bridges. The deal brings Stargate back under LayerZero's control and sets the stage for renewed focus on interoperability and platform redevelopment.
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