The proposal requires approval from STG holders through Stargate’s governance process, with a 70% approval threshold needed for passage.
Wormhole Foundation contended that LayerZero’s bid fails to reflect Stargate’s true value, citing the protocol’s treasury holdings and recent performance metrics.
On-chain data shows that Stargate processed $4 billion in bridge volume during July 2025, representing a 10x year-over-year increase. As of Aug. 20, it had $348 million in total value locked (TVL) across more than 80 chains.
According to the Wormhole Foundation:
“STG holders deserve better. The current bid undervalues the protocol’s assets, brand, codebase, and team.”
The WF added that these fundamentals justify a “meaningfully higher offer” than LayerZero’s proposed valuation.
LayerZero Foundation defends its pricing, noting Stargate’s backing of $0.14444 per circulating token compared to its trading price of $0.1637 per token at proposal time. It added that based on its calculations, the offer represents a premium on both metrics.
In addition, LayerZero argued that unified governance would eliminate resource conflicts between potentially competitive protocols.
At the same time, Wormhole Foundation proposed an alternative vision combining “Stargate’s unified liquidity pools with our broad ecosystem of integrations.”
The governance vote requires a 1.2 million veSTG token quorum with 70% approval for LayerZero’s proposal to pass. The proposal was amended to provide additional compensation for veSTG stakers through six months of revenue distribution.
The amendment happened following criticism about the equal treatment of locked versus unlocked tokens.
