- The Stargate DAO’s $138 million acquisition by LayerZero has been approved, with a 95% affirmative vote, indicating strong stakeholder support.
- This decision brings significant changes to major cross-chain protocols.
- Wormhole, Axelar, and Across had shown interest but were outbid.
Stargate DAO has approved a $138 million acquisition by LayerZero Foundation, overcoming last-minute interest from rivals including Wormhole, Axelar, and Across.
The acquisition marks a pivotal moment for cross-chain protocols, revising governance structures and potentially shaping future DAO mergers in the cryptocurrency sector.
Stargate DAO Acquisition Approved
The Stargate DAO has approved a remarkable $138 million acquisition by LayerZero. Despite last-minute interest from Wormhole, Axelar, and Across, LayerZero’s proposal prevailed, signaling a pivotal shift in the cross-chain protocol landscape. This decision marks a significant change.
LayerZero Foundation, spearheaded by CEO Bryan Pellegrino, successfully orchestrated the acquisition of Stargate DAO. Stargate, originally launched by LayerZero, will see its DAO dissolved and tokens swapped, further consolidating LayerZero’s influence in the cross-chain sector. Competitors Axelar and Wormhole had shown interest.
The acquisition’s immediate impact on the market is profound, with institutional votes playing a crucial role. The 95% approval rate reflects strong backing from governance participants. This acquisition underscores the shifting dynamics in cross-chain value transfer protocols and market consolidation.
The financial implications of this transaction are significant. Stargate DAO holders will transition their STG tokens to ZRO. The STG will be deprecated, with holders being compensated through ZRO at a fixed rate. Liquidity and staking dynamics may shift as a result.
LayerZero’s acquisition of Stargate heralds a new era of cross-chain interoperability, catalyzing industry discussions on governance and token economics. This decision, rarely seen in private DAO transactions, may set a precedent, influencing future mergers and acquisitions in the crypto space.
The potential financial and technological outcomes are intriguing. With ZRO gaining new utility and ecosystem inflows, market participants are closely monitoring the transition. The consolidation of LayerZero’s protocol could further solidify its role in cross-chain liquidity transfer. Bryan Pellegrino, CEO of LayerZero Labs, expressed their achievement, stating:
LayerZero has spent the last four years laying the infrastructure that enables the most efficient form of money transfer ever. Stargate’s return gives the LayerZero ecosystem a clear access point to the end-consumer, an immediate revenue-generating asset, and a clear focus on accelerating the velocity of value transfer.
