Stargate DAO has approved a $138 million acquisition by LayerZero, overcoming interest from rivals. This event may change the cross-chain protocol market.
Approval of Acquisition
Stargate DAO has approved the sale for $138 million to LayerZero. Despite competition from Wormhole, Axelar, and Across, LayerZero's proposal received a significant 95% approval from governance participants, emphasizing strong support among stakeholders.
Financial Implications
As part of the acquisition, Stargate token holders will transition from STG tokens to ZRO tokens, while STG will be deprecated. This may lead to changes in liquidity and staking dynamics, which carry significant financial implications for market participants.
Potential for Future Deals
The acquisition of Stargate by LayerZero opens a new era of cross-chain interoperability and may influence future mergers and acquisitions in the crypto industry. Bryan Pellegrino, the CEO of LayerZero, emphasized the importance of integrating Stargate for enhancing transfer efficiency.
The approval of the Stargate and LayerZero acquisition marks a significant step in the evolution of cross-chain protocols, potentially impacting future governance systems and token economics.
