Vega Protocol is shutting down its trading-focused blockchain after an on-chain governance vote redirected resources to core software development.
Following the successful passage of an on-chain governance referendum with nearly unanimous support, the trading-focused blockchain Vega (VEGA) is gradually ceasing operations. The project’s resources will now be allocated to core software development.
The community’s support for the blockchain and its native VEGA token has come to an end with the decision to terminate the Vega chain, which supported decentralized trading.
On September 12, the Vega Protocol team announced on their blog that trading on the network has already suspended, and the chain is currently in a “ramp down” phase. The price of VEGA experienced a 14% decline to $0.06203 due to the news.
“Our understanding from the validators is that the Vega chain will remain operational until at least Oct. 27 to allow users plenty of time to withdraw their assets.”
Vega Protocol
The Vega Protocol team also informed that a final vote is underway to determine the settlement prices for suspended markets and allocate approximately $28,000 in unused insurance funds to validators to “ensure the network operates for the agreed ramp down period.”
The market settlement will be finalized at the last recorded prices when trading was suspended following the referendum, which concludes on Sept. 13.
The team also cautioned that any assets remaining on-chain after operations cease could become irretrievable, as the protocol necessitates the authorization of withdrawals from the network’s bridge by two-thirds of validators.
The Vega Protocol network was launched in 2023 per the vision defined in its 2018 whitepaper.
This whitepaper delineated an application-specific blockchain constructed on the Tendermint proof-of-stake consensus mechanism. In 2019, Pantera Capital led a seed round that raised $5 million for the team. Subsequently, in 2021, the team conducted a $43 million community token sale on CoinList.
