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LayerZero’s $110 M Bid to “Buy Back” Stargate—Does Wormhole’s Last-Minute Move Matter?
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LayerZero’s $110 M Bid to “Buy Back” Stargate—Does Wormhole’s Last-Minute Move Matter?
Encrypting Legacy Business: Hybrid Innovation Becomes Web3’s Main Narrative
At its core, using Web3 infrastructure to host the time-tested business logic of Web2 models is the same playbook behind some Web3 projects that “back-door list” and the recent wave of U.S. public companies stockpiling crypto assets. Take a look at the projects now favored by primary-market investors and you’ll notice a common thread: they all lean toward hybrid innovation, plugging proven Web2 business logic into Web3 rails. • Lightyear ports the logic of traditional equity ETFs on-chain. • ...
PrismaX: The $11M Super Project Surging in Popularity with Unlimited Potential!
Project IntroductionPrismaX is an innovative blockchain project dedicated to delivering efficient and transparent decentralized services. Leveraging smart contracts and cross-chain interoperability, it supports diverse digital asset management and financial applications while optimizing transaction efficiency and scalability. Built with a modular architecture, PrismaX prioritizes security and user experience. Its native token, PMX, powers community governance and ecosystem incentives, driving...
A Comprehensive Analysis of Dubai’s RWA Regulation: From Licensing to Sandbox Implementation
Amidst the global trend of regulating virtual assets, Dubai has emerged as a crucial hub for Real-World Assets (RWA) due to its forward-looking strategies. This article delves deeply into Dubai’s RWA regulatory framework, covering the regulatory frameworks of VARA and DFSA, types of licenses and business scopes, the approval process for ARVA issuance, requirements for reserve assets, disclosure details, and DFSA’s newly launched tokenization regulatory sandbox program. It provides a comprehen...
Deal Overview: A Surprise Spanner in the Works
LayerZero’s $110 million proposal to acquire the cross-chain bridge Stargate—its own flagship front-end—was cruising toward approval when its arch-rival, the Wormhole Foundation, barged in. On August 21, Wormhole publicly claimed the offer “materially undervalues” Stargate’s assets and momentum, vowed to table a higher bid, and asked Snapshot to freeze the vote for five business days while it prepares a counter-proposal.
Background: Why LayerZero Wants Stargate Back
On August 11, the LayerZero Foundation posted a draft in Stargate’s governance forum, offering to swap every circulating STG token for ZRO at a fixed ratio of 1 STG : 0.08634 ZRO—prices of $0.1675 per STG and $1.94 per ZRO at announcement. After the swap, Stargate would dissolve its DAO, fold fully into the LayerZero stack, and route all future excess revenue into ZRO buy-backs.
Markets loved the headline: both ZRO and STG spiked 20 % within hours. Governance forums, however, erupted. Most Stargate community members called the bid a low-ball play that ignored Stargate’s market share and treasury.
The Vote So Far: Whales on Cruise Control
Snapshot voting opened on August 18. LayerZero sweetened the pot only slightly: veSTG voters would split 50 % of Stargate’s revenue for the next six months. Participation rocketed past quorum, and support topped 97 % for most of the window (the motion needs > 70 % to pass).
The lopsided tally isn’t surprising. Stargate is already the canonical bridge for LayerZero; half of Stargate’s foundation board are LayerZero appointees. The optics may scream “community governance,” but the outcome has always looked pre-ordained.
Wormhole’s “Open Conspiracy”: Four Paths, All Wins
Wormhole has yet to publish a formal offer, pleading the need for extra due-diligence time. Yet the mere threat already forces LayerZero into a four-way fork, each fork tilted in Wormhole’s favor:
Auction Scenario – Snapshot pauses, a bidding war erupts, and Wormhole wins Stargate outright.
Price-Hike Scenario – LayerZero matches or beats Wormhole’s bid, bleeding extra treasury but securing the asset.
Resentful-Community Scenario – Stargate ignores Wormhole and rams the original deal through. Irate STG holders fracture the LayerZero ecosystem.
Proposal-Failure Scenario – The vote, now under scrutiny, unexpectedly fails. Wormhole’s interference alone sinks the deal.
Wormhole spends nothing but gains something in every branch: either it steals the prize, forces the rival to overpay, seeds discord, or blocks the merger entirely.
Market Verdict: Theater, Not Turnaround
Fluid COO DMH distilled the mood: “Stargate and LayerZero already shook hands under the table. Wormhole is just pissed they sold Singapore for a bag of rice. So they’re bidding the price up to make life miserable, but everyone knows Stargate ends up inside LayerZero anyway.”
In other words, Wormhole’s eleventh-hour move is classic psy-ops: cheap to execute, impossible to ignore, and—win or lose—guaranteed to leave LayerZero with a headache.
Deal Overview: A Surprise Spanner in the Works
LayerZero’s $110 million proposal to acquire the cross-chain bridge Stargate—its own flagship front-end—was cruising toward approval when its arch-rival, the Wormhole Foundation, barged in. On August 21, Wormhole publicly claimed the offer “materially undervalues” Stargate’s assets and momentum, vowed to table a higher bid, and asked Snapshot to freeze the vote for five business days while it prepares a counter-proposal.
Background: Why LayerZero Wants Stargate Back
On August 11, the LayerZero Foundation posted a draft in Stargate’s governance forum, offering to swap every circulating STG token for ZRO at a fixed ratio of 1 STG : 0.08634 ZRO—prices of $0.1675 per STG and $1.94 per ZRO at announcement. After the swap, Stargate would dissolve its DAO, fold fully into the LayerZero stack, and route all future excess revenue into ZRO buy-backs.
Markets loved the headline: both ZRO and STG spiked 20 % within hours. Governance forums, however, erupted. Most Stargate community members called the bid a low-ball play that ignored Stargate’s market share and treasury.
The Vote So Far: Whales on Cruise Control
Snapshot voting opened on August 18. LayerZero sweetened the pot only slightly: veSTG voters would split 50 % of Stargate’s revenue for the next six months. Participation rocketed past quorum, and support topped 97 % for most of the window (the motion needs > 70 % to pass).
The lopsided tally isn’t surprising. Stargate is already the canonical bridge for LayerZero; half of Stargate’s foundation board are LayerZero appointees. The optics may scream “community governance,” but the outcome has always looked pre-ordained.
Wormhole’s “Open Conspiracy”: Four Paths, All Wins
Wormhole has yet to publish a formal offer, pleading the need for extra due-diligence time. Yet the mere threat already forces LayerZero into a four-way fork, each fork tilted in Wormhole’s favor:
Auction Scenario – Snapshot pauses, a bidding war erupts, and Wormhole wins Stargate outright.
Price-Hike Scenario – LayerZero matches or beats Wormhole’s bid, bleeding extra treasury but securing the asset.
Resentful-Community Scenario – Stargate ignores Wormhole and rams the original deal through. Irate STG holders fracture the LayerZero ecosystem.
Proposal-Failure Scenario – The vote, now under scrutiny, unexpectedly fails. Wormhole’s interference alone sinks the deal.
Wormhole spends nothing but gains something in every branch: either it steals the prize, forces the rival to overpay, seeds discord, or blocks the merger entirely.
Market Verdict: Theater, Not Turnaround
Fluid COO DMH distilled the mood: “Stargate and LayerZero already shook hands under the table. Wormhole is just pissed they sold Singapore for a bag of rice. So they’re bidding the price up to make life miserable, but everyone knows Stargate ends up inside LayerZero anyway.”
In other words, Wormhole’s eleventh-hour move is classic psy-ops: cheap to execute, impossible to ignore, and—win or lose—guaranteed to leave LayerZero with a headache.
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