The Vega protocol proposes to close the chain and start a new token
Crypto derivatives trading platform Vega has proposed to abandon the protocol blockchain and end official support for the native VEGA.
In a blog post on August 30, Vega said the idea was proposed to focus on the development and promotion of the protocol's software and launch a new project called “Nebula”.
Vega says Nebula will be a “full retail decentralized exchange (DEX) with commitment” built on the Vega protocol.
“Nebula will have its own NEB token, and VEGA token holders are being offered the opportunity to exchange VEGA for this new token,” Vega wrote.
The official Vega management proposal stated that the specific measures included in the proposal would halt trading, distribute the on-chain treasury to stakeholders and allow users to withdraw funds, providing “guaranteed USDT incentives” to keep the network running for the next two months. From Vega DEX.
“After that, it will be up to the current or potential validators to continue running nodes or not, but since there will be no trading and no VEGA will be given as rewards, the Alpha Minechain is expected to stop,” he said.
The proposal suggested that this would not affect the viability of the Vega protocol in the long term.
At the time of publication, the proposal received strong support from voters who took a stand on the decision, with 1.7 million tokens voting “for” and only 200 tokens being allocated.
The votes in favor of the proposal so far have been tallied. Source: Vega Management
Specifically, there is only a 2.5% participation threshold for approval of management proposals. Voting closes in three days on September 6.
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The proposal drew criticism from crypto pundits, including anonymous analyst Spreek, who said in a September 3 X post that the new NEB token would wipe out existing holders' allocations by up to five times.
Cointelegraph contacted Vega Protocol for comment but did not receive a response as of publication.
The price of the VEGA token plummeted in the days following the announcement, falling more than 17 percent in the last 24 hours alone.
Changing hands for $0.06 at the time of publication, VEGA is down more than 64% in the past month and has posted a 95% loss over the past year.
VEGA is down 64% in the past month. Source: CoinGecko
Vega first released its white paper in 2018, pitching itself as a trade-focused blockchain designed to facilitate high-volume derivatives trading, focusing on high-speed and fast settlement times.
In the year In 2019, Vega raised $5 million in a seed funding round led by Pantera Capital. In 2021, it secured an additional $43 million in a community funding round.
Vega currently holds $424,000 in total value-locked (TVL) on the protocol, a far cry from competing decentralized trading platforms such as Hyperliquid and dYdX, which boast $541 million and $395 million in TVLs, respectively.
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