Mike | nomial.io

Update on the LayerZero–Stargate proposal Last night, LayerZero revised its offer for Stargate and hosted a community call with: • Bryan, CEO of LayerZero • Angus, Stargate Foundation lead • Havds, Stargate Community lead Here are the biggest changes and what they mean for STG and ZRO holders: 1.) veSTG stakers will receive 6 months of Stargate revenue. • Distribution will be at the current 50 percent top-line revenue share rate while the other 50 percent buysback ZRO (based on last 3 months, thats $900k in stables to vestg in 6 months, but rev expected to grow if proposal passes) • Applies to stakers locked at the time the proposal went public • After 6 months, 100 percent of excess revenue will fund ZRO buybacks 2.) LayerZero’s reasoning • Two tokens create friction and slow execution • LayerZero built Stargate V1, V2, Hydra, and OFTs • Most major integrations came from LayerZero relationships • Regulatory and market changes favor consolidation • Institutions prefer dealing with a corporate entity over a DAO • Merging avoids building competing products and aligns incentives 3.) From Angus Lamps, Stargate Foundation lead • Stargate V1 proved strong product market fit. • The Foundation’s role has always been operational, not technical • LayerZero handled all major technical innovation and most commercial deals •Without the deal, the DAO must absorb higher operating costs on flat revenue, averaging $300k per month last quarter • Fee compression and lower token prices are increasing budget pressure • Operating separately risks misalignment or direct competition with LayerZero, which could drive Stargate into deficit and reduce treasury backing • Supports uniting under one team to secure Stargate’s future and maintain full alignment 4.) Why now? • $22B LayerZero messaging volume in Q2 • Stablecoin and payments demand is increasing • Stargate Foundation has reduced operational capacity • LayerZero wants to move faster and secure market share 5.) Valuation points • Offer set at the maximum LayerZero was willing to pay at the time. • Premium based on market price plus treasury backing value • ZRO price increase since announcement improves the premium slightly. 6.) Community positions • Supporters want unified direction and faster development. • Opponents think STG has stronger independent upside and value capture • Some are concerned ZRO has not been prioritized as much as STG and with upcoming unlocks 7.) Governance • 7 days discussion • 3 days vote(maybe an exception for this one) • Needs 1.2M veSTG quorum and 70 percent approval • Swap contract will stay open indefinitely Do you think these updates and Angus’s position make the deal strong enough to support?