TLDR:
- LayerZero acquires Stargate after governance approval, consolidating cross-chain messaging and liquidity under one foundation.
- Wormhole offered $120M in a failed counterbid for Stargate, Blockonomi reported earlier this month.
- STG token holders can convert to ZRO at a fixed 1 STG = 0.08634 ZRO rate with no deadline.
- veSTG stakers locked before August 10 will receive six months of revenue share under the acquisition terms.
The battle for Stargate is finally over. After weeks of speculation and competing bids, LayerZero secured full control of Stargate (STG). A governance vote approved the proposal, transferring the protocol, token, and treasury to the LayerZero Foundation.
This marks the end of StargateDAO and introduces a path for STG holders to convert into ZRO. The outcome also shuts down Wormhole’s attempt to outbid LayerZero with a $120 million cash offer.
Wormhole’s Failed Bid for Stargate
As reported earlier by Blockonomi, Wormhole tabled a $120 million offer to rival LayerZero’s proposed acquisition. The deal, pitched directly to Stargate’s community, aimed to redirect the project under Wormhole’s control. The governance process, however, went in favor of LayerZero after the official vote on August 23.
Stargate’s team confirmed the approval through its forum and official channels. A tweet from StargateFinance described the transaction as a move to “reinvent how value transfers” by combining LayerZero’s messaging rails with Stargate’s liquidity layer.
The failed Wormhole counteroffer reflected competition between two of the largest interoperability protocols in crypto. While Wormhole attempted to win support through direct capital, Stargate’s alignment with LayerZero proved decisive. The outcome sets the stage for Stargate to grow within the LayerZero ecosystem, locking in product and resource integration.
For the community, this means stability under a single foundation. It also signals the end of a contested acquisition that briefly split opinions among Stargate participants.
What the Deal Means for STG Token Holders
The acquisition ends the independent role of StargateDAO and dissolves all staking mechanisms tied to STG.
LayerZero confirmed that holders can redeem STG into ZRO through a dedicated contract. The conversion rate is fixed at 1 STG = 0.08634 ZRO. This contract, once live, will remain open indefinitely, allowing holders to swap at their own pace.
Users with locked or staked STG will see automatic unlocks once the redemption process begins. No immediate deadlines are attached, removing pressure to convert quickly. Revenue sharing is also part of the transition.
Holders of veSTG locked before August 10 will continue receiving half of protocol revenues for six months. The other half will be allocated to ZRO buybacks on the market.
Stargate’s operational services remain unchanged. Transfers, liquidity routes, and chain support will continue as before. After February, however, all future revenues will move directly toward ZRO, aligning incentives with the LayerZero ecosystem.
The foundation described this outcome as an opportunity for faster development. By combining cross-chain messaging and liquidity within a single structure, the plan accelerates Stargate’s growth roadmap. For investors, the direct swap into ZRO reshapes how value will accrue going forward
The post Wormhole Tried $120M, But Stargate DAO Handed LayerZero the Keys appeared first on Blockonomi.
Source: https://blockonomi.com/wormhole-tried-120m-but-stargate-dao-handed-layerzero-the-keys/
