- Trading Ceases, VEGA Token Plummets
- Transition to Nebula and NEB Token
- Historical Context and Future Steps
Vega Protocol, a Layer 1 blockchain specializing in derivatives trading, will cease its blockchain operations following a recent on-chain governance vote.
Trading Ceases, VEGA Token Plummets
Trading on the Vega network has been suspended, leading to an immediate drop in the price of VEGA, which now stands at $0.06. The chain is now in a 'ramp down' phase. The remaining insurance pool fund will be used to compensate validators and sustain network operations until late October, providing users adequate time to withdraw their assets. The final governance vote on the VEGA proposal is set to conclude at 15:00 UTC on September 13th. The governance proposal outlines that on-chain treasury will be redistributed to stakers, and validators will receive guaranteed USDT incentives to keep the network operational for the next two months.
Transition to Nebula and NEB Token
Vega Protocol will support Nebula, a DEX built with Vega's core software, as it winds down Vega blockchain. Nebula will introduce its own NEB token, offering VEGA token holders an opportunity to swap their tokens for the new NEB token. Barney Mannerings, co-founder of Vega Protocol, noted that while Vega’s blockchain and token did not achieve the growth needed for long-term sustainability, the software’s legacy will continue through Nebula.
Historical Context and Future Steps
Vega first launched its white paper in 2018 and raised $5 million through seed and $43 million through community funding rounds in 2019 and 2021, respectively. Despite these efforts, the project has struggled to maintain interest and growth in its blockchain operations.
The decision to end Vega Protocol’s blockchain operations marks a significant step in reallocating resources to software development and supporting other projects like Nebula. Users should stay informed of all changes and withdraw their assets in a timely manner.
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