Stargate Faces Delisting of $STG Token on Centralized Exchanges without Market Maker

Stargate Foundation, the decentralized autonomous organization (DAO) behind $STG token, has proposed engaging a market maker for its token. Previous proposals, SIP 24 and 25, failed to reach the 70% quorum required to move forward. Meanwhile, multiple exchanges have contacted the Foundation regarding $STG's liquidity issues, warning that the token will be delisted or deprioritized in the future if a market maker is not engaged.

To address this issue, Stargate Foundation considered several market makers and proposed GSR as the market maker for $STG. GSR, a leading market maker, ecosystem partner, and active, multi-stage investor, will provide much-needed liquidity to the market. In exchange, GSR is requesting 8,000,000 $STG tokens option for a 24-month term with a strike mechanism at an average price greater than $1.15.

The proposal is now open for community voting. If approved, the Stargate DAO will proceed with GSR as the market maker for $STG. However, if the proposal is voted down, the DAO will proceed without a market maker for the foreseeable future.

Potential delisting will also have negative consequences to the on chain volume for the STG token. Currently, the Stargate DAO owns almost all on chain liquidity and earns significant fees from trading activity that uses this liquidity. A portion of the activity is arbitrage between on chain liquidity and centralized exchanges. A lack of a robust centralized exchange pool results in less liquidity and decreases the ability for this arbitrage to happen and results in less fees earned by the DAO.

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Cross-Chain

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