The LayerZero (ZRO) Foundation announced the buyback of 50 million ZRO tokens from early investors.
This transaction represents 5% of the total supply. In addition to its a16z Crypto investment in April, the Foundation has repurchased over $150 million in ZRO this year.
The statement noted that Stargate revenues will be the primary source of future buybacks, but this latest acquisition is a completely independent and separate transaction. The LayerZero Foundation also noted that further buybacks may be made if similarly attractive opportunities arise.
In recent months, the Stargate community endorsed the LayerZero Foundation’s takeover bid. Snapshot data showed that over 15,100 addresses participated in the vote, with approximately 95% of the voting power supporting the deal. However, further analysis revealed that over half of the votes came from just two addresses. This was striking compared to the Stargate DAO’s past voting dynamics.
With the agreement, Stargate, valued at approximately $110 million, returned to the control of its original developer and the Stargate DAO was dissolved.
*This is not investment advice.