The Vega (VEGA) blockchain is set to cease operations following a near-unanimous on-chain governance vote by its validators.
This decision, announced on September 12, 2024, marks the end of community support for both the blockchain and its native VEGA token.
According to a blog post by the Vega Protocol team, trading on the network has already been halted, and the chain is entering a
“ramp down” phase. The team stated, “Our understanding from the validators is that the Vega chain will remain operational until at least October 27 to allow users plenty of time to withdraw their assets.”
The team explained in a previous blog post that the decision was driven by the network’s lack of traction as an application-specific blockchain for derivatives trading. “We’re proud of the software we’ve created, but the chain and token haven’t gained the interest or growth needed to sustain the project in its current form,” Barney Mannerings, Vega Protocol’s co-founder, reportedly stated.
Following the announcement, the price of VEGA dropped by 14%; it is currently trading at $0.06203.
A final vote is underway to determine settlement prices for suspended markets and distribute approximately $28,000 in unused insurance funds to validators. This vote, which is scheduled to conclude on September 13, will determine the network’s operations during the agreed ramp-down period.
The team warned that any assets remaining on-chain after operations end might become irretrievable, as withdrawals from the network’s bridge require approval from two-thirds of the validators.
In a similar development, Brazil’s neobank Nubank has suspended trading of its native token, Nucoin. Launched on the Polygon network in late 2022 as part of a rewards program, Nucoin can now only be used for in-app benefits. Users with at least 1,745 Nucoins can redeem them for Bitcoin or USD Coin until December 9, after which unredeemed Nucoins will remain valid only for in-app perks.
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