Vega Voters Hit ‘Delete,’ Layer 1 Blockchain Unanimously Voted Out of Existence
The on-chain vote to retire the Vega chain and its associated token passed almost unanimously. (Photo by Dongki Koh on Unsplash)
- Vega protocol members have voted unanimously to retire the Layer 1 blockchain and associated tokens.
- The project’s remaining resources will be used to support the maintenance and development of its core software.
- The price of the VEGA token has fallen 38% over the past week.
Vega protocol members have voted unanimously to retire the Layer 1 blockchain and VEGA token.
The chain is now expected to close after a “ramp down” period and will no longer support trading on any market.
Vega Votes to Delete
The on-chain vote to retire the Vega chain and its associated token passed almost unanimously.
The Vega chain and token, originally built to “incentivize and power a very different type of trading and network,” did not perform as the creators initially hoped.
Validators have been urged to keep nodes operational during the shutdown period to allow members to withdraw funds from the network.
The founding team said in a blog post that the project’s remaining resources will be used to support the maintenance and development of the core protocol software.
Key Information
It is understood that the Vega chain will remain active until at least Oct. 27 to give members time to withdraw their assets.
The founding team warned that assets could become stuck on the bridge if the chain halts.
“If this happens, the team will not be able to retrieve them for you. At all times, only a quorum (at least two-thirds) of validators can approve a withdrawal from the bridge, and we have no way to release any stuck funds,” the team wrote in a blog post.
The price of the VEGA token has fallen 38% over the past week, from $0.08 to $0.06, according to CoinGecko.
Vega’s founding team is also shifting their support over to Nebula, a decentralized exchange that uses Vega’s base software.
The project is expected to launch in late September, and VEGA token holders will be offered NEB tokens.
Why The Vote?
The founding team noted several reasons for proposing a complete retirement of the Vega chain.
Firstly, the team admits that the most promising applications within the Vega software “likely need their own teams, branding, and tokens.”
“This is especially true in the current crypto-native and retail-leaning environment, where the VEGA token and chain, which were originally conceived to incentivize and power a very different type of trading and network, have not been able to incentivize the upfront work,” the team wrote in a blog post.
In addition, the team notes that they believe the industry has moved on to embrace a cross-chain and multi-chain world, leaving no room for Vega single-chain and token.
“The single Vega chain and token are no longer well suited to the different potential applications of the open source Vega protocol,” the blog post read.
The Vega team said they intend to do less themselves and make room for the “wider ecosystem and community to take on some of the roles previously assumed by the project team.”
The core founding members said they will focus almost exclusively on developing and iterating the protocol and its user and developer experience in the future.
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