Vega Protocol is shutting down its blockchain, with validators taking over the network to temporarily allow users to withdraw funds before a complete shutdown at the end of October.
Blockchain focused on Vega commerce (VEGA) is shutting down 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 commerce, marks the end of community support for the blockchain and its native token VEGA. blog announcement On September 12, the team behind the Vega Protocol said that trading on the network had already ceased and that the chain is now entering a period of “phase-out.” Following the news, the price of VEGA plummeted by 14% to $0.06203.
“Validators have informed us that the Vega chain will remain operational until at least October 27th to give 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 the suspended markets and allocate approximately $28,000 in unspent insurance funds to validators to “ensure the network operates during the agreed-upon phase-down period.” The vote, which closes on September 13, will finalize the settlement of the market at the last recorded prices when trading was suspended.
The team also warned that any assets left on the chain after operations cease could become unrecoverable, as the protocol requires two-thirds of validators to authorize withdrawals from the network bridge.
Vega Protocol launched its network in 2023, following the vision outlined in its 2018 whitepaper, which detailed an application-specific blockchain built on Tendermint’s proof-of-stake consensus mechanism. In 2019, the team raised $5 million in a seed round led by Panther Capitalfollowed by a $43 million community token sale on CoinList in 2021.
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