A proposal for the merger of Layerzero & Stargate has been put forward, all the Stg tokens to exchange for Zro.
The merger of these two projects could serve as a warning panel for other multi-token and subdao models.
What the Layerzero-Stargate agreement means for chip holders
The Layerzero Foundation officially proposed to acquire Stargate and the Stg token. The estimated value is 110 million USD.
Under the proposal, each STG token will become exchangeable of 0.08634 Zro thanks to a fixed rate buyout contract, depending on the ZRO market price of $ 1.94 at the time of the proposal.
If it is approved, STG will cease its operational role and Layerzero Dissolve Stargate Dao. Layerzero said any surplus income from Stargate will be used to buy Zro. This buyout strategy has recently been observed in several major projects, notably ChainLink.
In the long term, it could reduce the supply of ZRO and modify its pricing / risk-return model.
According to the announcement, the proposal will also include a public discussion phase, followed by a three -day vote period on Snapshot. It requires a high approval threshold of 70%, with a quorum calculated on the basis of the VESTG.
The proposal has received positive and negative opinions from the community. Some argue that the management of two tokens simultaneously will lose the focus of the team and will become ineffective.
Others have argued that the Layerzero & Stargate merger is inevitable. However, from their operating model, concepts such as multi-token configurations and subdaos may not offer as much value as before.
“The two projects have long been synonymous with each other.
An objection focused on the issue of the rights of current STG holders.
“The offers are not at all attractive. They have no advantage to STG holders, and the STG income sharing system is not available on Zro. We cannot keep our tokens,” said a user.
However, the dissolution of Stargate DAO and its integration into a wider base raise questions about centralized governance. In addition, the SWAP mechanism, the open period of the buyout contract and the benefits for VESTG / Stakers could decide whether the Layerzero & Stargate merger agreement is approved.
The market reacted instantly following the merger announcement. STG and ZRO have increased sharply, currently negotiating at $ 0.1942 (+ 17%) and $ 2.44 (+ 22%), respectively. These short -term price movements reflect both merger expectations and the immediate reactions of market manufacturers.
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