As a long-term holder of STG and veSTG, I find this acquisition proposal by the LayerZero Foundation to be fundamentally flawed and inequitable. It undervalues Stargate’s assets and potential while disproportionately benefiting LayerZero at the expense of existing stakeholders.
1. Undervaluation of STG: The proposed price per STG fails to account for Stargate’s substantial growth prospects, particularly in light of the expanding stablecoin market. Recent revenue figures and projections for trillion-dollar stablecoin volumes suggest significant upside potential—historically, STG has traded as high as $4. Acquiring the protocol for approximately $110M overlooks this intrinsic value and resembles an opportunistic bid rather than a fair-market transaction.
2. Inadequate Compensation for veSTG Holders and Stakers: Long-term stakers, who have committed capital and foregone liquidity to support governance and emissions, receive no differentiated treatment. The flat 1:0.08634 STG-to-ZRO swap offers neither a premium for lock-up periods nor continued revenue participation. The elimination of the 50/50 fee split, with all future revenues redirected to ZRO buybacks, effectively dilutes our positions and transfers value to LayerZero’s ecosystem without reciprocal benefits.
3. Structural Imbalances and Lack of Transparency: The deal grants LayerZero full control over Stargate’s technology, revenue streams, and roadmap, while dissolving the DAO and imposing a rushed seven-day voting window. This precludes competitive bidding from other entities (e.g., major stablecoin issuers) and raises questions about the process’s integrity. A more equitable approach would involve extending the timeline—potentially to November—to allow market developments and alternative offers.
In summary, this proposal appears designed to consolidate LayerZero’s position rather than foster genuine synergy, potentially eroding trust in decentralized governance. I urge fellow holders to vote against it on Snapshot and advocate for revisions, such as a 1:1 ZRO swap, lock-up-based premiums, and sustained revenue sharing. Stargate’s independent trajectory remains viable and preferable under these terms.