I do not believe this is a fair acquisition. Stargate remains the primary bridge in the LayerZero ecosystem. Stakers have planted their roots years ago, and are expecting fair return at minimum. This is a lose/lose proposition for STG stakers.
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great news ever. go go go to the moon ZRO
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Any Stargate token Holder or Staker considering the Layer Zero Foundation offer should reflect on the following:
- The STG token has a ~14 cent backing and trailing 30 day yield of 80% APY, paid in USDC
- The ZRO token has 0 backing and 0 revenue. The name and ticker is appropriate.
- The STG token is fully dilluted from VC/ team unlocks.
- The ZRO token has 2.47 % token supply unlocks every month through 2027.
That should be enough for any sane STG holder to refuse the offer.
The Layer Zero Foundation wants to purchase a fully diluted, revenue-emitting asset (STG) with a non-revenue emitting asset (ZRO) with a long future of token unlocks. They made two tokens: one token with intrinsic value (STG) and another with zero intrinsic value (ZRO). Now they want to purchase the intrinsic value token with the zero intrinsic value token.
The Layer Zero leadership was happy to sell the STG tokens in the initial “community round” for 25 cents, before any revenue or token emissions. This was a good deal for Alameda.
The second public Stargate auction, which was open to the public and not Alameda had token sales range from 50 cents to above 90 cents. Now that Stargate is fully vested and actually produces revenue, we find that the Layer Zero Foundation explicitly values these tokens at 0.08634 ZRO each, which comes at no cost to them.
The CEO of Layer Zero Labs opines the “overhead” in workflows of having two separate entities. I’m so sorry having two token allocations and hundreds of millions of dollars in fundraises makes it difficult for you to manage your enterprises. One might think that having hundreds of millions of dollars in fundraising and multiple token allocations would make the work easier and worthwhile. It turns out, after Stargate is fully diluted and profitable, having hundreds of millions of dollars in fundraises and token allocations is a burden when the ZRO token unlocks are on the horizon.
The Stargate token and Hydra’s liquidity program are the core of Layer Zero. The only function of the ZRO token is selling.
The Layer Zero Foundation should consider the following counter offers:
- Buy STG tokens on the open market
- Raise the offer to $2.50/ STG paid in USDC instead of pre-dilution zero-revenue vapor tokens
- Kick rocks
9 Likes
The projects were separated from the beginning to avoid any strong dependencies between LayerZero and Stargate. If, in the very hypothetical future, Stargate wanted to rely on a blockchain other than LayerZero, it could do so.
If the projects were to be interdependent on each other, it should have been done from the beginning, not three years into the future.
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fully support the proposal for Stargate to transition under the management of the LayerZero Foundation.
As a holder of both STG and ZRO, I see this as a logical step that will benefit both ecosystems.
Why this decision matters:
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Unified strategic direction — bringing Stargate under LayerZero will simplify coordination, reduce fragmented decision-making, and ensure both projects move in sync.
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Increased market confidence — LayerZero has already proven itself as a reliable leader in cross-chain infrastructure. Integrating Stargate under its brand will strengthen trust and attract more attention from investors and partners.
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Faster integrations — shared resources and a single team mean Stargate can roll out new features, expand liquidity, and integrate more networks much faster.
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Tokenomics synergy — even if STG’s role is eventually restructured or merged into ZRO, it could simplify the ecosystem, remove duplicated functions, and ultimately strengthen the overall value proposition.
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Transparency and long-term vision — the LayerZero Foundation can provide a clear roadmap and sustainable development strategy, which benefits long-term holders.
This is my personal opinion.
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my answer is yes，totally agree.it is beneficial for both
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i think this is the best idea
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I support unification, but it raises a number of issues and questions.
I think the content has already been solidified, so there are parts that I don't understand, such as the part about the current stake, and I feel that a thorough explanation is necessary.
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Think about it. After the last halving cycle, Stargate was listed on Binance and other major global exchanges. Wasn’t all of this preparatory work for the current cycle?
Ethereum is now approaching a new all-time high, and Bitcoin has already surpassed its own.
As you know, an altcoin bull run will begin soon after Ethereum breaks its all-time high. Even if market makers don’t try to pump the Stargate price, it will naturally rise during a bull market. A bull market is just around the corner, coming this second half of the year. Accepting LayerZero’s current proposal would be selling Stargate for a ridiculously low price.
Does the Stargate Foundation really have a macroscopic view of the cryptocurrency market?
With such a low market cap right now, it’s only a matter of time before the price soars. Why is a vote on this proposal even happening?
Offer a higher price! Shouldn’t Stargate be worth at least $1 per coin?
Wake up!
4 Likes
If the acquisition is approved，LayerZero Foundation take over the Stargate treasury with the backing value $0.1444 per circulating supply. It seem like stargate are buying ZRO token instead for me.
If proposal approved :
Existing treasury assets and control* shift to the LayerZero Foundation.
Future revenues* from Stargate operations will not accrue to STG holders but instead will be used to buy back ZRO tokens—thus favoring ZRO holders and potentially marginalizing STG stakeholders’ future capture of value
Suggested Alternative Option: 1:1 STG → Staked ZRO for a premium:
- 1:1 exchange at a premium** could better honor the value of STG, especially for long-term locked holders.
- Automatic lock-up (staking) of ZRO for a certain period** would reduce immediate sell pressure, potentially protecting ZRO’s market from volatility.
- Dampening dumping: those seeking immediate liquidity would receive a smaller fraction, making the swap economically smoother for the ecosystem.
2 Likes
As a committed member of the Stargate community and a long-term STG holder, I must strongly oppose the current acquisition proposal from LayerZero. This offer is not only financially inadequate, but also an insult to the dedication, patience, and belief that STG holders have shown over the years.
For the past twelve months, STG holders have endured significant downward price pressure while the Stargate Foundation maintained high operational costs in pursuit of building a long-term, sustainable business. Many of us continued to stake, vote, and support the ecosystem without immediate rewards, because we believed in the protocol’s vision and future.
Now, at a time when the GENIUS Act in the United States is opening unprecedented opportunities for the stablecoin market—expected to grow from $250B to $3.7T—LayerZero is attempting to acquire the STG token at a valuation that barely reflects the value of our treasury assets, let alone the protocol’s future growth potential.
Just a few months ago, internal bull market modelling valued STG at $0.60—before the GENIUS Act was even passed. Since then, integrations, transaction volumes, and long-term staking rewards have all increased. The upcoming entry into the Intents market is another strong growth catalyst. Yet, this proposal ignores all of these factors and undervalues the protocol’s potential.
By accepting this offer, STG holders would be forced to swap into ZRO—a token that currently provides no share in future Stargate revenues, no direct link to LayerZero equity, and no guaranteed income stream. This strips STG holders of both governance influence and long-term participation in Stargate’s success.
This proposal feels less like a strategic merger and more like an opportunistic buyout at the lowest possible price, right before a potential altcoin season, designed to consolidate control while sidelining the very community that made Stargate successful.
I urge fellow STG holders to reject this inadequate proposal. We should instead allow time for the market to mature post-GENIUS Act, explore competitive offers from other industry leaders (such as Coinbase, Robinhood, Circle, or Tether), and negotiate from a position of strength—not desperation.
STG holders deserve fair value, fair treatment, and a say in the future of this protocol. This offer delivers none of those
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I need to think about it for the community.
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Here’s another thought. How about the Stargate DAO acquire part/all of LayerZero? The current ZRO token has no utility and no revenue share for users. LZ might learn a lesson or two from the Stargate DAO (not the team, they’ve been terrible lol).
3 Likes
Why would Stargate buy ZRO? Even the Layer Zero Foundation doesn’t want to hold the ZRO tokens 
Stargate is the leading cross chain bridge and cross chain liquidity with Hydra is going to be a big deal. They just upgraded the UX and are/ were preparing for a new marketing push with a recent hire. Stargate has been prepping for upgrades.
The Layer Zero leadership sees Stargate’s current and future economic position and thought to themselves:
“Why should we share the financial upside of Stargate with the Stargate token holders? We’ve used them for fundraising, we dumped the Stargate foundation tokens for incentives and operational expenses. We already dumped our STG token allocations, but we haven’t even started vesting with our ZRO tokens. We should transfer the underlying value of Stargate to our heavy ZRO bags that currently have zero utility.”
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3.5 years ago, Stargate was a protocol, a DAO, and a few core contributors. Those contributors lived in the community, and in LayerZero Labs. The success of Stargate V1 made it incredibly clear that a problem was solved and Stargate had a strong product market fit.
The Stargate Foundation was then born, initially serving a passive role to ensure the DAO functioned from an operational perspective. 2 years ago, the Stargate Foundation needed to grow in size in order to keep up with the speed of Stargate’s growth. This was necessary, and has landed Stargate where it is today. However - the role of the Foundation never changed. It has very much remained an operational entity, delivering on the mandate of the DAO – not a technical entity or business driven entity.
The entirety of technical innovation
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Stargate v1
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Stargate v2 & Hydra
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OFTs
were entirely invented, written, and audited by LayerZero Labs.
On top of this, the significant majority of commercial opportunities (Berachain, Story, USDT0, etc), has continued to be directed due to partnerships and existing relationships with LayerZero.
LayerZero has and continues to contribute to significant areas of Stargate. While this is naturally a mutually beneficial relationship, their value contributions to Stargate have been outsized.
If this proposal does not pass, the DAO will need to absorb all projected costs at significantly higher resource requirements. The recent DAO treasury reports have shown flat revenue MoM, with an average $300k earnings for the previous quarter. The industry is undergoing continued fee compression, despite growth in activity. With token prices down from highs earlier in the year, the annual budget has already increased in relative terms to maintain operation, and a recent restructure just undertaken reflects the need to stay lean.
Today, our incentives and priorities are aligned but if we continue to operate independently, we risk continued misalignment - and at times even direct competition - which will hurt both protocols long-term. In a world where LayerZero starts to directly pursue product lines in Stargate’s market, not only will it materially hurt Stargate’s revenue but it likely means Stargate will run at a significant net deficit; backing would reduce instead of increase monthly.
This proposal, if approved by the DAO, is an opportunity to lock in that alignment and bring to bear the LayerZero core contributors to build on and accomplish Stargate’s mission.
I fully support the voice of the community and look forward to the LayerZero Foundation addressing the concerns raised in this proposal. But I also believe that uniting Stargate with one of the strongest teams in crypto, will secure Stargate’s future and provide us with full unequivocal alignment and focus. This is the fuel Stargate needs.
One team, one focus, one massive story to tell.
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One team. One focus. Millions in fundraising and token allocations. One massive self - dealing conflict of interest.
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Emergency Counterproposal for a fair, independent process posted here: EMERGENCY PROPOSAL: Independent Sale Process for Stargate
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Hi Paul Langford here again,
The response from the LayerZero foundation to feedback from the Stargate community is indicative of everything I know about them and the entire ZRO team: they are here to win WITH us. I fully support the adjustment to the offer for veSTG holders, and will fully support this revised proposal should it come to a vote.
Thank you, LayerZero Foundation team, for listening carefully to feedback and updating your proposal.
Paul
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There’s an important fact we’re overlooking.
The very existence of Stargate as it is today — and the strong revenue stream that current stakers are so determined to protect — would not have been possible without Layerzero’s capital and technical support.
In this context, it’s hard for anyone to deny that if Stargate is to be sold or acquired, Layerzero is the most suitable party to take it forward. The problem is that, instead of fully recognizing the immense opportunities and potential this project holds, the discussion has tilted too much toward short-term value protection — to the point where even competitors like Axelar are being mentioned as possible buyers. This is deeply unfortunate.
We are all value investors. That means our focus should not be limited to short-term gains, but on pursuing the far greater value that lies ahead.
Protecting current returns is important, but turning away from a foundation that could multiply in value many times over in the long term would be walking away from an even greater opportunity.
A Layerzero acquisition would carry forward the partnership that made past success possible, and unlock the full potential of Stargate in the future. It is the most rational and strategic path forward.
Joel
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+1
I hope to soon finish drafting a reply of my own, but wanted to include my agreement with Joels statement.
3 Likes