LayerZero Foundation acquisition of Stargate (STG)

General
21

Everything is about opportunity. This offer is a good opportunity in a good time, for everyone. Let’s build together and go ahead!

1 Like
22

this is good for Linea community

1 Like
23

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.

3 Likes
24

great news ever. go go go to the moon ZRO

1 Like
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Any Stargate token Holder or Staker considering the Layer Zero Foundation offer should reflect on the following:

  1. The STG token has a ~14 cent backing and trailing 30 day yield of 80% APY, paid in USDC
  2. The ZRO token has 0 backing and 0 revenue. The name and ticker is appropriate.
  3. The STG token is fully dilluted from VC/ team unlocks.
  4. 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:

  1. Buy STG tokens on the open market
  2. Raise the offer to $2.50/ STG paid in USDC instead of pre-dilution zero-revenue vapor tokens
  3. Kick rocks
2 Likes