The crypto market kicked off the week with bullish momentum as LayerZero Foundation revealed a $110 million proposal to acquire the Stargate cross-chain bridge. This sparked a sharp rally in both LayerZero’s ZRO token and Stargate’s STG token, which surged 26% and 20% respectively in the past 24 hours.
The proposal, posted on Stargate DAO’s forum, seeks to dissolve the Stargate DAO and phase out the STG token. In its place, holders would swap each STG for 0.08634 ZRO through a fixed-rate redemption contract. This shift would make ZRO the sole token powering the merged ecosystem while maintaining uninterrupted bridge.
If approved, LayerZero will assume full control over Stargate’s operations, with revenues redirected toward ZRO buybacks, a move intended to strengthen the token’s long-term value.
While enthusiasm is high, the proposal has drawn mixed reactions from STG holders, with some arguing the swap undervalues their tokens and removes staking rewards. The proposal requires a 70% supermajority vote from the DAO to pass, with community discussions underway.
LayerZero’s acquisition proposal is structured as a strategic alignment intended to combine governance, improve technical efficiency, and support ongoing development.
CEO Bryan Pellegrino described the plan as a “single unified direction” for both projects, allowing Stargate to execute on an ambitious roadmap while benefiting from LayerZero’s broader infrastructure.
Supporters believe merging tokens will eliminate inefficiencies and consolidate brand recognition in the competitive cross-chain market. If approved, the LayerZero–Stargate merger could reshape the cross-chain interoperability landscape, positioning ZRO for continued gains in the weeks ahead.
Cover image from ChatGPT, ZROUSD chart from Tradingview
