Goodbye STG, Hello ZRO: LayerZero Completes Stargate Takeover

LayerZero has officially taken over Stargate (STG), bringing the cross-chain liquidity protocol under its foundation. The move, first proposed on August 10 and later approved by governance, means Stargate’s protocol, token, and treasury are now fully operated by the LayerZero Foundation.

What changes for Stargate and STG holders

Stargate has long been the flagship application of LayerZero, powering over 55 million messages and more than $70 billion in transfer volume since launch.

By bringing both under one roof, LayerZero says it can now align product development more closely, expand Stargate’s scope beyond simple bridging, and channel future value directly into ZRO.

For token holders, this means the STG token is being phased out. A redemption contract will allow conversions at a fixed rate of 1 STG = 0.08634 ZRO, with no deadline to redeem.

Locked or staked STG will automatically unlock once the conversion process begins, allowing holders to safely exit positions. Meanwhile, the StargateDAO will be dissolved, and STG staking will no longer exist.

There is, however, a transition benefit for early backers.

Anyone who had veSTG locked before the proposal date of August 10 will receive 50% of Stargate protocol revenue for six months, running from September through February. The other 50% will go toward ZRO buybacks. Revenue shares from the August 1–23 period will also be paid out as usual.

What stays the same

For everyday users, operations remain unchanged. Transfers, liquidity routes, and chain integrations will continue without disruption.

Stargate will keep supporting canonical transfers across more than 80 blockchains and work as a liquidity rail for LayerZero’s OFT token standard, which now includes 388 tokens with a combined market cap of roughly $90 billion.

LayerZero itself has connected 138 blockchains, supported over 550 applications, and facilitated more than $120 billion in lifetime transfers. By folding Stargate into the foundation, it now controls both the messaging layer (LayerZero) and the liquidity layer (Stargate) of cross-chain infrastructure.

Looking ahead, the Stargate team says the roadmap will move into an “accelerated phase,” leveraging LayerZero’s broader resources to expand beyond bridging and become a core interface for value transfer.

For now, it’s business as usual for users,  but with a different token at the center.

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