LayerZero Proposes $110M Stargate Token Merger In Consolidation Play

LayerZero Foundation is proposing a $110 million consolidation by acquiring Stargate  and merging its economy into the LayerZero token.

The plan would convert all STG tokens to ZRO at a fixed ratio, effectively ending STG’s role as a governance and staking token.

Revenues from Stargate’s cross-chain bridge — $939,000 paid to stakers in the last three months — would now support ZRO through potential buybacks, while governance functions would fully migrate to ZRO holders.

The proposal would also phase out Stargate’s fixed-yield staking, replacing it with direct participation in LayerZero’s token economy.

LayerZero says the move will streamline governance and focus value in one token, but some STG holders criticize the swap ratio as undervaluing STG relative to its price history and income potential. Others demand added incentives to offset the loss of predictable staking rewards.

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