LayerZero Secures Stargate in Landmark $120M DAO Acquisition

A decisive community vote has handed LayerZero Labs control of cross-chain protocol Stargate, marking one of the largest DAO acquisitions in crypto history.

Deal Terms and Conversion

Nearly 95% of voters approved dissolving the Stargate DAO and converting its STG tokens into LayerZero’s ZRO at a rate of 1 STG = 0.08634 ZRO. The transaction, valued at about $120 million, gives LayerZero direct access to Stargate’s users and revenue flows. To secure support, LayerZero revised its proposal shortly before voting, offering veSTG holders 50% of revenue for six months before profits are redirected entirely into ZRO buybacks and burns.

Rival Bids Surface

The outcome came despite a dramatic last-minute challenge. Wormhole Foundation revealed it had locked $120M in USDC as a competing cash bid, urging Stargate to delay the vote and consider its offer. The move drew interest from other interoperability players, including Axelar and Across, both of which suggested they would have submitted bids if given more time.

Across co-founder Hart Lambur criticized the speed of the process, arguing that “rushing benefits no one.” Axelar’s team echoed that sentiment, hinting at a potential proposal if a competitive process had been allowed.

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LayerZero Celebrates Win

Despite the turbulence, LayerZero prevailed. CEO Bryan Pellegrino hailed the deal as a milestone, calling Stargate “an immediate revenue-generating asset” that will accelerate value transfer across chains. The foundation framed the acquisition as a historic precedent, one of the first nine-figure DAO buyouts in the industry.

Analysts say the move could reshape how decentralized organizations are valued, acquired, and integrated – signaling a new phase in Web3’s corporate evolution.