LayerZero’s $120 Million Stargate Takeover: Rare DAO-Approved Crypto Merger Shakes Market
LayerZero just pulled off a landmark acquisition—$120 million to absorb Stargate in one of crypto's first DAO-blessed mergers.
Why This Deal Breaks New Ground
Unlike traditional backroom buyouts, this takeover got the green light from decentralized governance—token holders actually voted yes. LayerZero isn’t just buying tech; it’s acquiring liquidity, cross-chain routes, and a loyal community. The $120 million price tag signals serious conviction in interoperability’s future.
DAOs Aren’t Just for Vibes Anymore
Remember when decentralized orgs felt more like amateur hour? This move proves DAOs can execute high-stakes deals without Wall Street intermediaries—cutting out the bankers and their fat fees. No underwriters, no roadshows—just code, consensus, and capital.
Where This Leaves the Competition
Rivals now face a fortified giant. LayerZero + Stargate creates a cross-chain leviathan with deeper liquidity, smoother bridges, and one hell of a treasury. Expect consolidation—or desperation—from smaller players.
One cynical take? Even in decentralization, the big bags still win. $120 million might be a bargain if interoperability becomes crypto’s next moat—or just another line item on a future balance sheet write-down.
Stargate DAO Members Vote 94% in Favor of LayerZero Acquisition
The acquisition was approved through a community vote. More than 94% of Stargate DAO participants supported the move. Notably, turnout was unusually high, with over 15,000 members casting more than 7.5 million veSTG tokens.
The Stargate DAO’s approval dissolves the organization and initiates the migration of STG tokens into ZRO at a fixed rate of 1 STG = 0.08634 ZRO. Both liquid and staked balances will be eligible for conversion.
The Stargate DAO has approved our acquisition of Stargate (STG).
We’ve spent four years building the rails to reinvent how value moves. Today, we accelerate our network effects.
LayerZero is better money technology.
Stargate is the interface for value transfer. pic.twitter.com/U1QI1308dV
LayerZero said Stargate will allocate 50% of its top-line revenue to holders for six months after the vote’s approval. The remaining half will support a buyback program designed to reduce the circulating supply of ZRO.
However, once the six-month window ends, all future excess revenue will be directed to the buyback program, further cutting ZRO’s supply.
Meanwhile, Stargate’s bridge will remain fully operational, ensuring users continue to access cross-chain transfers without disruption.
LayerZero noted that the integration WOULD expand Stargate’s product suite beyond bridging and stablecoin liquidity to include swaps, vaults, and other financial infrastructure.
Stargate has been central to cross-chain liquidity since its launch in 2021. Originally developed within LayerZero before becoming a DAO, the protocol has processed more than $70 billion across 50 blockchains.
Its reabsorption now marks one of the first nine-figure acquisitions of a decentralized organization. The deal highlights how tokenholder governance can deliver outcomes on par with traditional corporate transactions.
LayerZero co-founder and CEO Bryan Pellegrino framed the deal as a natural extension of the company’s long-term roadmap.
He said Stargate will serve as both an access point for end users and a revenue-producing asset. It will also help LayerZero accelerate the speed at which value can MOVE across blockchains.
Data from BeInCrypto shows ZRO climbed 4.7% to $2.17, while STG ROSE 4.9% to $0.19 immediately after the announcement. However, those gains later reversed, returning both assets to prior levels as of press time.
Still, the temporary spike underscored renewed confidence in the combined platform’s role in advancing blockchain interoperability, despite broader volatility across digital assets.
