Vega Protocol is shutting down its blockchain, with validators set to maintain the network temporarily to allow users to withdraw funds before a full cessation by late October.
Trading-focused blockchain Vega (VEGA) is winding down its operations after an on-chain governance vote passed with near-unanimous support, directing the project’s resources toward core software development.
The decision to retire the Vega chain, which supported decentralized trading, marks the end of the community’s support for the blockchain and its native VEGA token. In a blog announcement on Sept. 12, the team behind Vega Protocol said that trading on the network has already ceased, and the chain is now entering a “ramp down” period. Following the news, the price of VEGA plunged 14% down to $0.06203.
“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 further added 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 vote, which closes on Sept. 13, will finalize the market settlement at the last recorded prices when trading was suspended.
The team also warned that any assets left on-chain after operations cease could become irretrievable, as the protocol requires two-thirds of validators to authorize withdrawals from the network’s bridge.
Vega Protocol launched its network in 2023, following the vision outlined in its 2018 whitepaper, which detailed an application-specific blockchain built on the Tendermint proof-of-stake consensus mechanism. In 2019, the team raised $5 million in a seed round led by Pantera Capital, followed by a $43 million community token sale on CoinList in 2021.
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