Despite a few twists and turns, LayerZero will indeed acquire the Stargate bridge thanks to a very favorable reception of the offer made to the community. A look back at this major acquisition.
Stargate accepts LayerZero’s offer
Last week, we reported on the LayerZero Foundation’s plan to acquire the Stargate bridge. While the vote was leaning toward “yes,” the Wormhole Foundation teams entered the race to attempt a counteroffer. However, this was not enough to change the outcome, as it is now official: LayerZero is acquiring Stargate. As we explained, this will involve a future migration of STG tokens to ZRO tokens. Brian Pellegrino, co-founder and CEO of LayerZero Labs, was enthusiastic about the outcome of the vote:
Despite all the noise, this is the highest turnout of any vote in Stargate’s history: more than 15,000 addresses voted. Not only did about 95% of voters vote in favor, but about 95% of addresses voted in favor. The bridge is home.
While 95% of addresses were able to vote “yes,” it should be noted that even if most of them had chosen to vote “no,” it still would not have tipped the balance, since nearly 52% of the “yes” votes came from just two addresses:
This shows one of the limitations of decentralized autonomous organizations (DAOs), which also have relatively low participation when compared to the supply of STG tokens in circulation. The 7.6 million tokens cast in this vote represent 0.78% of all STG tokens.
While the Wormhole teams attempted to obtain a temporary suspension of the vote in order to make a proposal of at least US$120 million, the vote ultimately went ahead.
In addition to Wormhole, it should also be noted that the Alexar Foundation had also expressed interest:
We believe that the economic benefits of a merger between Axelar and Stargate, both technically and financially, are significantly greater, and we are therefore very interested in making a proposal. If a competitive process is launched for the acquisition of Stargate, we would be very interested in preparing a comprehensive proposal and encourage Stargate to gather all options before making a decision.
On Monday, the Stargate teams are expected to communicate further information about the upcoming transition, now that the outcome has been finalized. In the meantime, the price of STG is $0.17, down 3.78% over 24 hours, while ZRO is trading at $1.97, down 3.94%.
