Layerzero has completed its acquisition of Stargate Finance in a $120 million deal that has been completely settled on native Zro tokens.
On August 24th, the Layerzero Foundation confirmed that the transaction will integrate two of the industry’s most widely used platforms under one governance and token framework.
Stargate Dao members vote 94% in favor of Layerzero’s acquisition
The acquisition was approved through a community vote. Over 94% of Stargate DAO participants supported this move. In particular, the voter turnout was extraordinarily high, with over 15,000 members casting over 7.5 million best tokens.
Stargate Dao approval will dismiss the organization and begin the transition of STG tokens to ZRO at a fixed speed of 1 STG = 0.08634 ZRO. The balance of both liquid and piles is subject to conversion.
Layerzero said Stargate will allocate 50% of its top-line revenue to holders for six months after votes are approved. The other half supports a buyback program designed to reduce Zro’s circulation supply.
However, once the six-month window is over, all future excess revenues will be directed towards the buyback programme, further reducing ZRO supply.
Meanwhile, Stargate’s bridge continues to work perfectly, ensuring that users continue to access cross-chain transfers without causing confusion.
Layerzero noted that the integration will allow Stargate’s product suite to include swaps, vaults and other financial infrastructure beyond bridging and Stablecoin liquidity.
Since its launch in 2021, Stargate has been at the heart of cross-chain liquidity. Originally developed within Layerzero before becoming DAO, the protocol handled over $70 billion on 50 blockchains.
That reabsorption became one of the first nine digit acquisitions of distributed organizations. The transaction highlights how token holder governance provides results comparable to traditional corporate transactions.
Layerzero co-founder and CEO Bryan Pellegrino has framed the deal as a natural extension of the company’s long-term roadmap.
He said Stargate will act as both an access point for end users and a revenue-generating asset. It also helps to accelerate the speed at which Layerzero can travel across the blockchain.
Beincrypto data shows Zro rose 4.7% to $2.17, while STG rose 4.9% to $0.19, shortly after the announcement. However, these profits later reversed, bringing both assets back to previous levels at press time.
Nevertheless, the temporary spike highlighted new confidence in the role of multi-platforms in advance of blockchain interoperability despite the broader volatility of the overall digital assets.
The Post Layerzero seal first appeared on Beincrypto with a $120 million Stargate takeover in a rare DAO approved crypto merger.
