The LayerZero Foundation has proposed a full acquisition of the cross-chain bridge Stargate (STG) to merge its token economy into the main LayerZero ecosystem. If the proposal is approved, it would consolidate the two protocols’ infrastructure under a single native asset, ZRO.
The LayerZero Foundation has proposed a full acquisition of the cross-chain bridge Stargate (STG) to merge its token economy into the main LayerZero ecosystem. If the proposal is approved, it would consolidate the two protocols’ infrastructure under a single native asset, ZRO.
LayerZero’s proposal to acquire Stargate involves a $110 million deal that will lead to the swapping of all STG tokens to ZRO at a fixed conversion rate, thus dissolving the Stargate DAO.
News of the proposal sent the prices of both STG and ZRO soaring, as traders bet on the deal’s approval. Although the vote is still pending, many in the community believe the Stargate DAO, which holds a 70% supermajority, will easily pass it.
Meanwhile, despite the short-term recovery, STG’s price remains significantly low from an all-time high, which it established in 2022.
According to data from TradingView, STG traded for $0.1988 at the time of writing, reflecting a 40% rally in the past seven days. The cryptocurrency surged 18.35% early Monday morning, reflecting sustained bullish momentum ahead of a critical period in the digital asset’s life.
The proposal details a fixed swap ratio of 1 STG for 0.08634 ZRO. Based on the ZRO offer price of $1.94, this places the value of STG in the deal at $0.1675.
What about the ZRO token?
ZRO’s price has also benefited from the bullish sentiment, rallying 53% in the past week, with a notable 38.4% surge in the last 48 hours. Many analysts expect the proposal to gain approval and are watching for the potential effect on both tokens.
Part of a bigger plan.
