Crypto Protocol Proposes Shutdown and Transition to New Project

Vega Protocol, crypto derivatives platform, has proposed shutting down its blockchain and discontinuing support for its native token, VEGA.

In a recent announcement, Vega outlined its intention to focus on advancing its software and launching a new project named “Nebula.” This new project will be a fully decentralized exchange (DEX) with dedicated liquidity, built upon the existing Vega protocol.

Nebula will introduce its own token, NEB, and VEGA token holders will have the opportunity to exchange their tokens for the new NEB token.

The proposal details plans to halt trading, redistribute funds from the on-chain treasury to stakers, and offer incentives to validators to keep the network operational for the next two months. This period will allow users to withdraw their assets from the Vega DEX.

After this transition, it will be up to validators to decide whether to continue operating nodes. With no trading and no new issuance of VEGA tokens, the existing mainnet is expected to cease functioning.

The proposal has garnered substantial support, with 1.7 million tokens voting in favor, while only 200 tokens opposed. Voting will conclude on September 6, with a minimal participation threshold required for approval.

Criticism has emerged from some commentators, who argue that the new NEB token could significantly reduce the value of existing holdings.

Vega Protocol, which initially aimed to facilitate high-volume derivatives trading, first presented its white paper in 2018 and has since raised significant funding. Currently, Vega holds a fraction of the total value locked compared to competitors in the decentralized trading space.