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Vega Protocol to Cease Blockchain Operations Following Governance Vote

Sep 19, 2024
  1. Trading Ceases and VEGA Token Plummets
  2. Governance Vote and Resource Reallocation
  3. Transition to Nebula and NEB Token

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

Trading Ceases and VEGA Token Plummets

As a result of the vote, trading on the Vega network has halted, leading to an immediate drop in the price of VEGA to $0.06. 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.

Governance Vote and Resource Reallocation

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. 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. 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.

Despite the shutdown of Vega's blockchain, the software will continue to be utilized in new projects like Nebula. VEGA token holders will have the opportunity to swap their tokens for NEB tokens, providing some utility despite the blockchain’s retirement.

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