Originally published on: September 03, 2024
Vega Protocol, a crypto derivatives trading platform, has recently announced its proposal to retire its existing blockchain and discontinue support for its native token, VEGA. In a blog post dated Aug. 30, Vega revealed its intention to shift its focus to the development and promotion of its software, as well as the initiation of a new project named “Nebula.”
Nebula is set to be a full retail decentralized exchange (DEX) with committed liquidity, operating on the Vega protocol. To accompany this new project, Nebula will introduce its own NEB token. VEGA token holders are being offered the opportunity to exchange their VEGA tokens for this newly introduced token.
Barney Mannerings, the co-founder of Vega Protocol, expressed his pride in the software they have developed, although acknowledging that the blockchain and native token have not garnered the sustainable growth and interest desired in the long term. Mannerings stated that they believe the software will flourish as an open-source protocol for others to build upon, with Nebula leading the way by offering NEB tokens to VEGA token holders.
The proposal outlined in the official Vega Governance proposal includes the suspension of trading, the redistribution of the on-chain treasury to stakers, and the provision of guaranteed USDT incentives to validators for the next two months to allow users to withdraw funds from the Vega DEX.
As of now, the proposal has gained strong support from voters, with 1.7 million tokens voting in favor and minimal allocation against it. The voting window will close on Sept. 6, with a 2.5% participation threshold required for governance proposals to pass.
Despite this positive response, the proposal did receive some criticism from the crypto community. Pundits, including Spreek, expressed concerns over the potential dilution of existing holders’ allocation by up to five times with the introduction of the new NEB token.
Following the announcement, the price of the VEGA token has seen a significant decline, dropping over 17% in the last 24 hours and down 64% in the last month. Despite this setback, Vega Protocol remains optimistic about the future of the protocol and the opportunities presented by Nebula.
Vega Protocol, which initially presented its white paper in 2018, has secured funding rounds in previous years, including a $5 million seed funding round in 2019 and an additional $43 million in 2021.
Nebula represents a new chapter for Vega Protocol, promising exciting developments in the world of decentralized exchanges. Stay tuned for updates on this innovative project and the future of Vega Protocol.
