LayerZero Proposes Acquisition of Stargate (STG)

3 full years after launching, Stargate is still the most used bridge in the industry today.

It’s done $70B+ in volume.

It’s the home of every major OFT.

It has made bootstrapping liquidity to any new chain trivially easy with Hydra.

And yet there is still so much more it could do.

We want to add a huge dose of fuel to the fire that Stargate has been burning – Which is why we are proposing an acquisition of the Stargate token.

Final Proposal: LayerZero Proposes Acquisition of Stargate (STG)

Following feedback from the community, the proposal has been updated to include a revenue-sharing period for veSTG holders and an extended voting period.

The final proposal with updated terms can be found below:

• All circulating STG (including staked/voting STG) is swapped for ZRO at a ratio of 1 STG : 0.08634 ZRO.
• Stargate will become even more deeply ingrained in the LayerZero ecosystem, building a suite of consumer-facing offerings that may expand on its core in many new ways.
• veSTG holders (determined by a snapshot at time of initial proposal) will receive 50% of all top-line Stargate revenue for six months from the date of vote passing. The remaining 50% will be directed towards reducing the circulating supply of ZRO via a buyback program.
• After six months, all future excess revenue generated by Stargate will be directed towards reducing the circulating supply of ZRO via a buyback program.
• The dissolution of the Stargate DAO.

Governance & Implementation This proposal requires a governance vote from STG token holders under the existing Stargate Finance DAO rules. Key steps:

• Voting: The normal StargateDAO-mandated voting period is extended from three days to seven days. STG holders will vote For or Against the offer from the LayerZero Foundation. Quorum is 1.2M veSTG and approval threshold must meet 70% for the vote to pass.
• Execution: If approved, STG holders will be informed of how to swap for ZRO. LayerZero Foundation will assume ownership and operation of all Stargate Finance duties. Stargate will continue without interruption; users of the Stargate bridge will not experience any downtime or changes in functionality during the transition.
• Redemption: If the proposal is approved, STG will cease to have any role in the operations of Stargate Finance. Each STG token will become redeemable for 0.08634 ZRO through a fixed-rate redemption contract. If you hold veSTG, this will be unlocked and withdrawable from the staking contract. The swap contract will remain open indefinitely. Should there ever be a need to close this contract in the future, advance notice will be provided.

Conclusion This offer is designed to accelerate both Stargate and LayerZero, giving Stargate the resources to ship on an aggressive roadmap that expands its prerogative outside of bridging, while tying an incredible, revenue-generating protocol that touches the end-consumer deeper into the LayerZero ecosystem. If this proposal passes, Stargate will have a more dedicated set of technical resources to ship and move faster than ever before.

A single token, single direction, single focus, and a broader mandate. Tldr; We want to move faster, ship incredible products and win. Let’s bring the bridge home. — LayerZero Foundation