DeFi Platform Proposes Blockchain Shutdown and New Token Introduction
Vega, a decentralized finance (DeFi) platform, has proposed a radical overhaul that includes deactivating its current blockchain and phasing out its native token in favor of a new one, which would significantly reduce the value of existing tokens.
This proposal has stirred up considerable debate within the community due to its substantial impact on the project’s trajectory.
In their announcement, the Vega Governance team outlined a plan to cease support for the Vega blockchain and its token, as detailed in a recent blog post.
If the proposal is approved, it will trigger several changes: trading on the platform will be suspended, the on-chain treasury will be redistributed to stakers, and validators will receive USDT incentives to maintain network operations for a minimum of two months.
READ MORE: DeFi Protocols Face Significant Fee Drop Amidst Market Shifts
This interim period is intended to allow users to withdraw their assets from the decentralized exchange (DEX) before the mainnet chain is expected to go offline.
Validators will have the option to continue running nodes post-shutdown, but with trading and token rewards halted, the network is likely to become nonfunctional over time.
Although the VEGA token and its protocol’s technical aspects will remain unchanged, the community could potentially develop a new chain based on VEGA. Nonetheless, the Vega project team has stated they do not plan to offer any future support to such VEGA-based chains.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
