Vega Protocol Shuts Down Layer 1 Blockchain After Governance Vote

Vega Protocol, a Pantera Capital-backed network, is shutting down its layer 1 blockchain. The community passed a unanimous governance vote to close the project and direct itsresources to core software development.

However, the blockchain's validators will temporarily maintain the network. This will enable users to withdraw their funds till a complete fold of the platform by ending of October.

Vega Community Members Vote for Layer 1 Chain Closure

Vega Protocol announced via a blog post that it plans to shut down its layer 1 blockchain and associated token.

The network's decision followed a unanimous governance vote by its community members to end support for the Vega chain and its native token, VEGA.

Further, the community agreed to redirect the project's remaining resources toward maintaining and developing core software.

The protocol team mentioned that the community took this decision after assessing the network's performance trend. It noted that Vega showed little traction as an application-centered blockchain for derivatives trading.

Vega Protocol co-founder Barney Mannerings reacted to the move on the chain's cessation.

Mannerings stated: While we're proud of the software we've built, the chain and token have not seen the interest and growth that would make them sustainable and allow the project to continue in its current form."

Based on this decision, Vega Protocol has discontinued its trading support on all markets. The network will also completely fold after a ramp down" period ending by late October.

Meanwhile, the network also incentivizes its validators to maintain the chain temporarily till the final shutdown. This move will enable users to withdraw their funds.

The Vega Protocol 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 protocol team has indicated support for a decentralized exchange (DEX) Nebula, an independent project operating with Vega's core software.

Additionally, the team revealed that Nebula will get its own NEB token. The project plans to offer some NEB tokens to VEGA coin holders, providing them with some utility.

Again, Vega Protocol co-founder Mannerings noted that Nebula has great opportunities for DeFi developers. According to him, the software project is designed as an open-source platform to enable creators to build on it.

Vega Calls Users to Withdraw Their Assets

Meanwhile, the Vega Protocol team has called on users to withdraw their assets on the platform.

It stated that the validators would only keep the network operational until October 27, after which the chain would cease to exist. This means that users can only withdraw their assets from the platform within this period.

Further, the team warned that all assets left on the network after the specified window will become inaccessible to users. This action conforms with Vega's functionality, which requires two-thirds of validators to approve withdrawals via its chain bridge.

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