Vega Protocol Community Votes to Shut Down Network and VEGA Token

The community of the derivatives-focused L1 blockchain, Vega Protocol, has voted to cease support for its network and the VEGA token.

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

The decision is driven by the network’s low popularity. The blockchain will continue operations until October 27 to allow users to withdraw their assets.

“The network and token did not receive the interest and growth needed to make them sustainable and maintain the project in its current form,” commented Vega Protocol co-founder Barney Mannerings.

Following the vote, support for on-chain trading on any markets has been discontinued.

The team plans to allocate resources solely for the development and support of a DEX called Nebula, which is based on Vega software. The platform will have its own token, NEB, which is planned to be offered to VEGA holders.

In September, the token’s price hit a historic low. Over the past 30 days, VEGA has plummeted by 69.9%, according to CoinGecko.

The project published its white paper in 2018, and the mainnet launched on May 10, 2023. Later that month, the team activated cryptocurrency futures markets.

In 2021, Vega Protocol raised $5 million in a funding round with participation from Arrington Capital and Coinbase Ventures.