Catenaa, Sunday, August 31, 2025-The decentralized governance organization behind cross-chain bridge Stargate has approved an acquisition by the LayerZero Foundation, with nearly 95% of votes in favor, despite last-minute interest from Wormhole, Axelar, and Across.
LayerZero revised its initial offer to address concerns from Stargate token holders, allowing holders to swap STG tokens for LayerZero’s ZRO tokens at a ratio of 1 STG to 0.08634 ZRO.
veSTG holders will receive 50% of Stargate’s top-line revenue for six months, with remaining revenue directed to ZRO token buybacks. The deal, valued around $120 million at current prices, also dissolves the Stargate DAO.
In the final days of the vote, Wormhole proposed a $120 million cash bid, requesting a pause to allow evaluation.
Axelar and Across also signaled interest, contingent on a competitive process being initiated. Despite these competing offers, the DAO vote proceeded and was finalized Saturday night.
LayerZero CEO Bryan Pellegrino framed the acquisition as a strategic expansion, giving LayerZero direct access to consumers, immediate revenue generation, and enhanced cross-chain value transfer.
The transaction is described as one of the first private acquisitions of a DAO exceeding $100 million.
Stargate, launched by LayerZero in 2022, remains the most widely used bridge, though its STG token lags behind rivals Wormhole and Axelar in market capitalization.
