LayerZero announced its decision to acquire Stargate Finance for $110 million, triggering disagreements within the community and a surge in token prices.
Acquisition Plan
LayerZero plans to buy out all circulating STG tokens of the Stargate project at a price of $0.1675 per STG, with a swap ratio of 1 STG = 0.08634 ZRO. The Stargate DAO will be dissolved, and all surplus protocol funds will be used for ZRO buybacks and burns. This single acquisition strategy involves a 7-day discussion period and a 3-day Snapshot vote.
Market Reaction
Following the announcement, the price of ZRO surged over 30%, while STG spiked nearly 29%. This indicates significant changes in the LayerZero and Stargate ecosystems, contingent on deal approval.
Criticism and Community Concerns
Despite the token surges, STG holders expressed concerns over the proposed price, which they believe undervalues Stargate’s long-term potential. Critics label the offer a low-price land grab, noting the lack of fair compensation and income rights. There are also worries about the expedited voting process, which might hinder potential competitive bids.
The community's general reaction to LayerZero's acquisition proposal for Stargate highlights the divide among investors who express concerns over the deal's terms and the potential loss of token value. Further discussions are expected to shape the future interaction of these two projects.
