LayerZero and Stargate in $110 million Token Swap: Acquisition Plan Raises Controversy

LayerZero’s plan to absorb Stargate in a $110 million token swap has sparked controversy within the community, with many pushing back against the proposal.

In a shocking move, LayerZero announced its intentions to acquire Stargate in a massive $110 million token consolidation bid. The company explained that this acquisition would accelerate the development of both protocols and create a single unified stack for ecosystem integration. This plan would see STG tokens converted into ZRO at a fixed exchange rate.

However, not everyone is pleased with this proposal, as many community members are criticizing the swap ratio used in the deal. They claim that their tokens are undervalued, considering Stargate’s revenue streams and payouts to stakers. The group argues that these returns justify a higher valuation and point out the absence of a revenue-sharing model within ZRO.

As a result, token holders have suggested alternative incentives or even a 1:1 swap ratio as an alternative. LayerZero’s proposal is currently open for public comment for seven days before moving to a community vote.

Source: coincentral.com