LayerZero wins StarGate in the four-way acquisition battle! Details of the $110 million acquisition case revealed.

In a fierce bidding war lasting several days and involving multiple parties, the blockchain cross-chain messaging protocol LayerZero successfully acquired the encryption protocol StarGate with a bid of $110 million. This transaction received 95% support from the community vote, not only bringing StarGate back under LayerZero but also making it one of the most watched acquisition cases in the recent crypto market.

Acquisition Background: From Controversy to Proposal Modification

LayerZero developed and launched StarGate as early as 2022. This protocol uses liquidity pools to facilitate cross-chain asset transfers, avoiding reliance on traditional, hacker-prone blockchain bridges.

However, the initial acquisition proposal has caused dissatisfaction among STG holders, as the plan to use StarGate's excess revenue to repurchase LayerZero (ZRO) tokens lacks direct benefits for STG holders.

Under community pressure, LayerZero revised the proposal: within the next six months, 50% of the revenue will be allocated to STG holders, and the remaining 50% will be used to buy back ZRO.

Four-way Acquisition Battle: Wormhole, Axelar, Across Involved

When the LayerZero proposal entered the voting phase, three competing companies expressed their positions one after another:

Wormhole: proposed a $120 million all-cash acquisition, promising STG holders to receive three times the projected revenue within six months and accelerate payments, and requested a voting suspension, but was rejected.

Axelar Network: It indicates that if there is a formal competition process, a comprehensive proposal will be submitted.

Across Protocol: Co-founder Hart Lambur stated that they intend to participate but will not rush to make a bid at the last moment.

Despite the fierce competition, Angus Lamps, head of the StarGate Foundation, clearly stated that the voting on LayerZero will not be suspended and has been in contact with parties interested in the acquisition.

Voting Result: Highest Participation Ever

According to official data, this vote attracted over 15,000 addresses to participate, setting a historical record for StarGate:

Approval votes: 94.76% (approximately 7.2 million STG)

Opposition votes: 5.24% (approximately 399,400 STG)

LayerZero co-founder and CEO Bryan Pellegrino stated on X that not only did approximately 95% of the weighted votes support the acquisition, but about 95% of the voting addresses also backed the proposal.

Transaction Details and Subsequent Impact

According to the final approved transaction terms:

1. The circulating STG will be exchanged for LayerZero tokens at a ratio of 1 STG to 0.08634 ZRO.

2. StarGate will fully return to the control of the LayerZero Foundation, and future revenue will partially be returned to STG holders.

This acquisition not only consolidates LayerZero's position in the cross-chain infrastructure field but also provides StarGate with new development opportunities in a fiercely competitive market. Industry observers believe that this acquisition battle demonstrates the strategic value of cross-chain protocols is on the rise, and more similar mergers and acquisitions may emerge in the future.

Conclusion

LayerZero has emerged victorious in the four-way acquisition battle, not only reflecting its financial strength but also its long-term strategic value placed on StarGate. With the acquisition now settled, the market will focus on how LayerZero utilizes StarGate's cross-chain advantages to drive the expansion and application of its ecosystem. For more in-depth analysis of the crypto market, please follow the official Gate platform.