- The Vega protocol team has voted to sunset the Vega chain and its base token
- Vega chain will cease operations after a “ramp-down period”
- The team will shift its focus to a new chain called Nebula
The Vega protocol team is discontinuing the development of the Vega blockchain and has voted to sunset the project. In an August 29 post, the team said that shutting down the project would help the team to “focus on the development and promotion of the open source Vega protocol software.” The team revealed that the chain’s community unanimously agreed to shut down the protocol and its VEGA token which it said will be removed from trading on all markets, effectively bringing the chain to a permanent end.
Validators to Facilitate Offboarding
The Vega team noted that the chain’s shutdown will be gradual to give users a chance to withdraw their funds. During the “ramp down” period, validators on the network will be incentivized to keep their nodes running.
The on-chain vote to retire the Vega chain has officially passed.
As a result, the Vega chain no longer supports trading on any markets. The chain is expected to cease operations after a “ramp-down” period, during which validators are incentivised to maintain node operations,…
— Vega Protocol (@vegaprotocol) September 11, 2024
Vega’s community is currently voting on how to “settle all markets and transfer insurance pool funds.” The proposal has already met the 75% majority threshold with close to 100% of voters supporting it.
Vega’s co-founder Barney Mannerings had previously said that the Vega protocol had failed to attract a sizeable interest to make its operation sustainable. The team said they’ll use the lessons learned to create Nebula, a new blockchain project using the Vega software.
The VEGA-NEB Connection
Nebula will be launched later this month with a new native token known as NEB. VEGA token holders will have the opportunity to swap VEGA with NEB.
Vega isn’t the only network to shut down or move in a different direction. The Celo blockchain, for example, has in the passed indicated that it’s planning to shift from being a layer one network to an Ethereum layer 2.
Although the Vega team has embarked on a new project, it’s to be seen whether Nebula will be able to successfully address the shortcomings of its predecessor.
