LayerZero Seals $120 Million Stargate Takeover in Rare DAO-Approved Crypto Merger
The LayerZero-Stargate deal dissolves the DAO and converts all STG tokens into ZRO, consolidating both platforms under one governance framework.
LayerZero has finalized the acquisition of Stargate Finance in a $120 million transaction settled entirely in its native ZRO token.
On August 24, the LayerZero Foundation confirmed that the deal will consolidate two of the industry’s most widely used platforms under one governance and token framework.
Stargate DAO Members Vote 94% in Favor of LayerZero Acquisition
The acquisition was approved through a community vote. More than 94% of Stargate DAO participants supported the move. Notably, turnout was unusually high, with over 15,000 members casting more than 7.5 million veSTG tokens.
The Stargate DAO’s approval dissolves the organization and initiates the migration of STG tokens into ZRO at a fixed rate of 1 STG = 0.08634 ZRO. Both liquid and staked balances will be eligible for conversion.
The Stargate DAO has approved our acquisition of Stargate (STG).We’ve spent four years building the rails to reinvent how value moves. Today, we accelerate our network effects.LayerZero is better money technology.Stargate is the interface for value transfer. pic.twitter.com/U1QI1308dV
— LayerZero (@LayerZero_Core) August 24, 2025
LayerZero said Stargate will allocate 50% of its top-line revenue to holders for six months after the vote’s approval. The remaining half will support a buyback program designed to reduce the circulating supply of ZRO.
However, once the six-month window ends, all future excess revenue will be directed to the buyback program, further cutting ZRO’s supply.
Meanwhile, Stargate’s bridge will remain fully operational, ensuring users continue to access cross-chain transfers without disruption.
LayerZero noted that the integration would expand Stargate’s product suite beyond bridging and stablecoin liquidity to include swaps, vaults, and other financial infrastructure.
Stargate has been central to cross-chain liquidity since its launch in 2021. Originally developed within LayerZero before becoming a DAO, the protocol has processed more than $70 billion across 50 blockchains.
Its reabsorption now marks one of the first nine-figure acquisitions of a decentralized organization. The deal highlights how tokenholder governance can deliver outcomes on par with traditional corporate transactions.
LayerZero co-founder and CEO Bryan Pellegrino framed the deal as a natural extension of the company’s long-term roadmap.
He said Stargate will serve as both an access point for end users and a revenue-producing asset. It will also help LayerZero accelerate the speed at which value can move across blockchains.
Data shows ZRO climbed 4.7% to $2.17, while STG rose 4.9% to $0.19 immediately after the announcement. However, those gains later reversed, returning both assets to prior levels as of press time.

Still, the temporary spike underscored renewed confidence in the combined platform’s role in advancing blockchain interoperability, despite broader volatility across digital assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Elon Musk takes Apple and OpenAI to court for ganging up on him
Share link:In this post: Elon Musk’s xAI sued Apple and OpenAI for allegedly colluding to block AI competition in smartphones and app rankings. The lawsuit says Apple boosts ChatGPT on its devices while suppressing rivals like xAI’s Grok in the App Store. Sam Altman and OpenAI deny wrongdoing and accuse Elon of harassment and manipulation through X.

Porsche abandons EV battery plans as European carmakers struggle to gain market share
Share link:In this post: Porsche will no longer produce high-performance EV batteries at its Cellforce unit. About 200 of nearly 300 Cellforce jobs will be cut as the unit focuses on research and development. European automakers are struggling to compete with Asia’s dominance in battery production.

Cardano announces comprehensive XRP integration

Galaxy Digital, Multicoin, and Jump Crypto in talks to raise $1 billion for Solana purchases

Trending news
MoreCrypto prices
More








