TL;DR
- LayerZero secured the acquisition of Stargate after a tense bidding battle against Wormhole, Axelar, and Across, finalizing the deal at 110 million dollars.
- The Stargate community overwhelmingly approved the takeover, with nearly 95% of votes in favor.
- The agreement reinforces LayerZero’s long-term plan to unify liquidity across blockchains, offering users a safer and more efficient alternative to traditional bridges.
LayerZero has officially regained control of Stargate, the cross-chain protocol it originally launched in 2022, after winning a $110 million community-approved takeover. The vote saw record engagement, with more than 15,000 addresses participating and nearly 7.2 million STG tokens supporting the move. The acquisition was not without drama, as Wormhole, Axelar, and Across each expressed strong interest, attempting to disrupt the process with last-minute offers and well-coordinated strategic counterarguments.
While Wormhole presented a $120 million all-cash proposal, Stargate leaders clarified that the original vote could not be paused. The community ultimately favored LayerZero’s revised plan, which allocates 50% of Stargate’s top-line revenue to STG stakers for six months, while the rest supports a ZRO token buyback program. As part of the agreement, all circulating STG tokens will be swapped for ZRO at a fixed ratio, cementing Stargate’s full integration into LayerZero’s rapidly expanding ecosystem.
Community Approval Strengthens Governance
The overwhelming support highlights the resilience of decentralized governance in high-stakes decisions. CEO Bryan Pellegrino emphasized that not only did 95% of tokens vote in favor, but 95% of participating addresses aligned with the decision, showing both institutional and retail backing. Such broad consensus gives LayerZero the mandate to expand its vision of secure and efficient cross-chain communication without the delays that often hinder governance votes in complex DeFi environments.
Cross-Chain Competition Intensifies
The bidding war illustrates the strategic value of Stargate in the growing cross-chain sector. Wormhole’s aggressive cash offer and the expressed interest from Axelar and Across signal rising competition to control infrastructure that enables seamless movement of assets across networks. For LayerZero, bringing Stargate back under its umbrella consolidates its advantage in designing protocols that avoid the vulnerabilities of traditional blockchain bridges, a sector plagued by billion-dollar exploits.
Looking ahead, analysts see the acquisition as a foundation for LayerZero to scale beyond simple asset transfers. By leveraging Stargate’s liquidity model, the project could expand into powering cross-chain lending, derivatives, and real-world asset tokenization. If successful, this takeover will not only strengthen LayerZero’s position but also accelerate adoption of secure multi-chain solutions across the broader blockchain industry worldwide.
