The Situation:
• Stargate is the largest bridge in crypto. Over the last two months, token holders began receiving fee revenue distributions. The Stargate Foundation holds a massive treasury.
• LayerZero has made an unsolicited offer to acquire Stargate at effectively net asset value, pricing the bridge and operating business near zero.
• The token has been down only for months. There is no market confidence in the team. The Stargate team has not opposed this deal. They appear aligned with LayerZero and have not disclosed conflicts of interest or any compensation they would receive if the deal closes.
• There is no clear public disclosure of the Stargate DAO’s entity structure. The team has concealed this. It is possible the DAO was never independent, that LayerZero controlled it, and that token buyers were misled.
• Comparison: Axelar, with roughly one tenth of Stargate’s bridged volume, trades at about double Stargate’s valuation at around $340M. At minimum, Stargate net of treasury should be comparable, around $450M or about $0.45 per token on the low end. Realistically 5-10X that given the difference in volume, dominance, potential and the brand.
• LayerZero is valued 12X higher than Stargate at the proposed offer despite much of LayerZero’s volume originating on Stargate and Stargate producing higher fees than LayerZero.
Proposal
To maximize value for STG holders, the DAO adopts these emergency actions:
1. Appoint a public representative.
The DAO will appoint a representative that has no connection with either the Stargate Team or LayerZero and will appoint him or her with a duty to pursue the best outcome and the maximum return for STG holders.
2. Retain an independent investment bank.
The representative will retain a legitimate third‑party investment bank on behalf of the DAO to run a competitive sale process and solicit independent offers for Stargate. LayerZero is encouraged to submit a true arm’s‑length bid in that process.
3. Buyer outreach.
Bids must be solicited from at least:
• LayerZero
• Binance
• Solana
• Circle
• Tether
• The 10 largest crypto VC funds
• Other bridging providers, including Axelar and Wormhole
4. Negotiation and DAO vote.
The bank, in consultation with the representative, will negotiate with potential buyers and present the best proposal to the DAO for approval. Target timeline: 45 days.
5. Legal review.
The representative will concurrently retain legal counsel to investigate whether the DAO is properly and independently operated in accordance with its rules and applicable law, and whether the DAO board and team have acted in the best interests of token holders or engaged in self‑dealing.
6. Interim protections.
Effective immediately, the team is prohibited from disposing of funds, making investments, or undertaking large expenditures inconsistent with these circumstances. The team must cooperate with the representative, report all material developments, and must not communicate with LayerZero about any potential deal outside the official DAO process. Additionally, this vote prohibits further votes on other sales, including to LayerZero, for 45 days or until a full neutral process has been run, whichever occurs sooner.
Expected outcomes
- Safeguard the DAO treasury.
- Ensure no illegal actions are taken by the DAO or the team.
- Maximize value for token holders.
Why this is reasonable
None of the above should be objectionable to LayerZero or the Stargate team. If there has been no malfeasance or self‑dealing, and if LayerZero’s offer is truly the best available, this process will ensure the community does not feel cheated and can join the LayerZero community knowing the result was fair and no better bids existed. A fair and transparent process would also protect both LayerZero as well as the Stargate team from legal liability and litigation. This proposal is in the best interests of STG holders and all parties involved and should be voted on and approved immediately.