Vega Protocol to Shut Down Blockchain, Users Advised to Withdraw Funds by Late October

Vega Protocol to Shut Down Blockchain, Users Advised to Withdraw Funds by Late October

Vega Protocol, a blockchain project designed for decentralized trading, is winding down its operations after a nearly unanimous on-chain governance vote redirected the project’s focus towards core software development. Validators will temporarily maintain the network to ensure users have sufficient time to withdraw their funds, with a complete shutdown expected by the end of October.

In a blog post on September 12, the Vega team confirmed that trading on the network has already ceased, and the chain has now entered a “ramp down” phase. The community’s decision to discontinue support for the Vega blockchain and its native token, VEGA, has led to a sharp 14% drop in the token’s price, now sitting at $0.06203.

“We understand from the validators that the Vega chain will remain functional until at least October 27, giving users plenty of time to withdraw their assets,” the Vega team stated.

A final governance vote is currently underway to determine settlement prices for suspended markets and allocate approximately $28,000 in unused insurance funds to validators, ensuring the network remains operational during the shutdown period. This vote, scheduled to close on September 13, will settle markets based on the last available prices prior to the halt in trading.

The team has also cautioned that assets left on the chain after its closure may become irretrievable, as withdrawals from the network’s bridge require authorization from two-thirds of the validators.

Launched in 2023 following its 2018 whitepaper, Vega Protocol was built on the Tendermint proof-of-stake consensus model. The project initially raised $5 million in a seed round led by Pantera Capital in 2019, followed by a successful $43 million community token sale on CoinList in 2021.