1. Trading Ceases and VEGA Token Plummets
2. Transition to Nebula and NEB Token
3. Historical Background and Future Steps

Vega Protocol, a Layer 1 blockchain specializing in derivatives trading, ends its operations following a recent on-chain governance vote.

Trading Ceases and VEGA Token Plummets

Trading on the Vega network has been suspended, causing an immediate drop in the price of VEGA to $0.06. The ongoing governance vote will finalize the prices at which suspended markets will close and establish settlement rates. The remaining insurance pool fund will be used to compensate validators and sustain network operations until late October. Users have been given 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. Users with staked VEGA tokens are advised to participate in this final vote and maintain their staked tokens until the process is complete. The governance proposal outlines that the on-chain treasury will be redistributed to stakers. Validators will receive guaranteed USDT incentives to keep the network operational for the next two months. After this period, validators will decide whether to continue running nodes, as there will be no further trading or VEGA issuance.

Transition to Nebula and NEB Token

Vega Protocol will support Nebula, a DEX built with Vega's core software, as it winds down the Vega blockchain. Nebula will introduce its own NEB token, offering VEGA token holders an opportunity to swap their tokens for the new NEB token. This move aims to provide some utility for VEGA holders despite the blockchain’s retirement. 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 Background 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.

Despite the cessation of Vega's blockchain operations, the development of the core software will continue through new projects like Nebula, providing VEGA token holders with a transition path to a new platform.