Vega Protocol, known for its Layer 1 blockchain focused on derivatives trading, has decided to shut down its network following a recent governance vote. The decision, reached by community members, immediately suspended trading activities on the Vega blockchain. The network, which started its first on-chain markets in 2023, failed to attract the traffic required to sustain its existence.

The team behind Vega stated that more people needed to be actively using the network and interested in its expansion, which led to the team’s decision to concentrate solely on creating and supporting the fundamental program. Such a shift implied that the current structure of the blockchain as the app chain for trading derivatives is impossible.

Vega Protocol Shuts Down Chain, Introduces Nebula with NEB Token for VEGA Holders

Barney Mannerings, co-founder of Vega Protocol, responded by stating that he was proud of the software they had created but realized that the chain and token did not garner enough support.

Vega’s core developers are to support and launch a new project called Nebula, which will use Vega’s core software to address the shutdown. Nebula, the independent decentralized exchange, will issue its own NEB token. This token will be issued and given to VEGA token holders during migration.

Mannerings emphasizes that the idea is to keep the software as an open-source protocol that others, such as Nebula, can expand on. To compensate for the changes that may be affected, the NEB token will be offered to the holders of the VEGA token.

Customers are encouraged to remove their funds from the Vega network during this transition period. Validators are expected to maintain their nodes to enable this process. The Vega chain is expected to continue operating until at least October 27, 2024, and users will be able to withdraw their funds before the network is shut down entirely.

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