LayerZero’s $110M Plan to Snatch Stargate – Is it Fair? Token Chaos Ensues!

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In a move that is either genius or just plain absurd, the LayerZero Foundation, the brains behind the cross-blockchain messaging protocol known as LayerZero (clever, right?), has put forth a proposal to acquire the crypto protocol Stargate for a hefty $110 million. Unsurprisingly, this has caused a surge in the tokens associated with both platforms, proving once again that nothing gets crypto enthusiasts more excited than a hefty acquisition proposal.

LayerZero made its pitch in a post to Stargate’s forum on Sunday, offering a plan to “accelerate both Stargate and LayerZero,” apparently aimed at giving Stargate the resources it desperately needs to ship on an “aggressive roadmap.” And, naturally, the plan is designed to expand Stargate’s “prerogative outside of bridging,” which sounds as vague and confusing as LayerZero’s mission statement itself.

Here’s the deal: LayerZero would swap the platform’s token, Stargate Finance (STG), for its self-titled token LayerZero (ZRO) at a rate of 1 STG to 0.08634 ZRO. Yes, you read that right – fractions. It’s like getting change in the form of digital tokens from an ATM machine that doesn’t know the meaning of “rounding up.”

Stargate, a brainchild of LayerZero, was launched in 2022. And if the deal is approved (cross your fingers, Stargate community!), it would officially fall back into LayerZero’s arms – kind of like a child reluctantly returning to its parent after a rebellious teenage phase.

Stargate’s core function? Well, it lets users transfer digital assets across blockchains using liquidity pools, a bit like being able to send cash across town without worrying about your bank account being hacked… too often.

STG, ZRO tokens rise on plan

Predictably, the tokens linked to these platforms saw a rise in value after LayerZero’s proposal, because when millions are thrown around, who doesn’t want a piece of the action? Both tokens gained double-digit percentage points in a display of typical crypto market behavior: rise now, cry later.

LayerZero’s token, ZRO, surged over 23% in the past 24 hours to trade at $2.44. This made it one of the top gainers in the crypto market – and no, this isn’t the type of market where you get a trophy for “Best Token on a Random Tuesday.” According to CoinGecko, the jump was more of a “wait, this is real?” moment for many.

Meanwhile, Stargate’s token didn’t do too badly either, gaining around 16.5% over the last 24 hours, touching just over 19 cents. Of course, this is still a far cry from the halcyon days when everything seemed to be skyrocketing. Both tokens are well below their peaks – ZRO is down 67% from its December high of $7.47, and STG has plummeted over 95% from its mid-2022 peak of $4.14. Ouch.

LayerZero boss hails plan as “unified direction”

LayerZero’s co-founder and CEO Bryan Pellegrino – who may or may not be living his best life right now – posted on X (formerly Twitter) that he wants to “move faster, ship faster.” A rallying cry for any tech leader, especially one with a $110 million acquisition in mind. He emphasized that this proposal would “help Stargate execute on its ambitious roadmap,” while also creating a “single stack” that anyone integrating within the [LayerZero] ecosystem can adopt. Wow, that’s almost as fancy as it sounds.

He also threw in the promise that this would give STG holders a “more liquid token” – because who doesn’t want liquid tokens? – and provide the Stargate community with “a clear path forward with significantly more resources and a single unified direction.” The only thing missing here is a banner and confetti.

STG tokenholders say plan “not attractive at all”

Of course, not everyone is buying into this whole “unified direction” idea. Some disgruntled holders of Stargate’s token expressed their feelings about the deal, and let’s just say the feedback was far from glowing. Some admitted the need for a swap, but argued that the deal on the table is “unfair” and “won’t allow for staking.” In the words of one irate Stargate user, “The offers are not attractive at all. They do not offer any advantages to STG holders, and STG’s revenue-sharing system is not available on ZRO.” Ouch again.

Others pointed out that LayerZero’s offer needs a substantial raise, possibly even a 1:1 token swap. Why? Well, because Stargate makes so much revenue and has such potential, it seems only fair to ask for a better deal. “It’s like trying to sell a Ferrari for the price of a used bicycle,” one person might say.

One more user voiced the sentiment that “managing two tokens is a pain,” and while merging them “makes sense,” it still doesn’t seem to make financial sense for STG holders. Token swaps are complicated enough without throwing in the fact that you won’t be able to stake your tokens for rewards. Bummer, right?

Stargate has given its community seven days to comment on the proposal. After that, the decentralized autonomous organization (DAO) – essentially a glorified group chat – will vote on whether to accept or reject the deal. So, stay tuned. This saga is far from over.

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2025-08-11 09:49