LayerZero Foundation Unveils Major Integration: Stargate Bridge Consolidation in $110 Million Cross-Chain Strategy

pvt_key_collector · 2025-12-26T21:42:43+00:00

The LayerZero Foundation plans to integrate the Stargate cross-chain bridge protocol with a $110 million consolidation, phasing out Stargate's STG token in favor of LayerZero's ZRO token. The move will dissolve Stargate's DAO, aiming to enhance development and explore broader use cases within LayerZero's omnichain ecosystem.

pvt_key_collector

2025-12-26 21:42:43

Abstract generation in progress

The LayerZero Foundation has announced an ambitious plan to integrate Stargate, the prominent cross-chain bridge protocol, into its ecosystem through a $110 million consolidation. This strategic move marks a significant shift in how LayerZero is structuring its omnichain infrastructure.

Integration Terms and Token Conversion

Under the proposal framework, Stargate’s STG token will be gradually phased out in favor of LayerZero’s native ZRO token. Token holders are offered an exchange mechanism: 1 STG converts to 0.08634 ZRO. Based on current market valuations, this exchange rate values each STG at approximately $0.11 (updated as of latest trading data), with ZRO trading at $1.24.

What Happens to Stargate’s Governance

The integration will result in the dissolution of Stargate’s decentralized autonomous organization (DAO), with the bridge protocol becoming an operational component of the LayerZero Foundation rather than maintaining independent governance. This consolidation represents a departure from the traditional DAO-governed model toward a more integrated cross-chain infrastructure approach.

Strategic Rationale Behind the Consolidation

The Foundation’s proposal emphasizes this integration as a catalyst for accelerated development across both protocols. By bringing Stargate under the LayerZero umbrella, the initiative aims to leverage shared resources and technical expertise. As outlined in the proposal: the move is intended to equip Stargate with enhanced funding and strategic direction to execute its roadmap, while simultaneously enabling LayerZero to deepen its connection with end-user-facing applications that generate meaningful revenue streams within the broader omnichain ecosystem.

Expanding Beyond Cross-Chain Bridge Functions

Rather than limiting Stargate to its current cross-chain bridge role, the integration positions the protocol to explore expanded use cases and services. This represents a broader vision for LayerZero’s cross-chain architecture—moving from standalone bridge infrastructure toward a more comprehensive interoperability layer that serves diverse protocol and application needs.

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