Nebula Token (NEB) and Vega Legacy Token (Vega)

🌻 Uncategorised/General Discussion
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  • Nebula Token (NEB): This is the new utility token issued by Nebula Exchange. It is used for transaction fees, staking, governance, and other functionalities within the Nebula ecosystem.
  • Vega Legacy Token (Vega): This token represents the original Vega token holders. It will be retained by Vega Protocol holders and can be staked or locked to receive rewards from Nebula’s success.
  1. Revenue Sharing Mechanism
  • Profit Sharing: Nebula Exchange allocates a fixed percentage (e.g., 50%) of its trading fees or profits to a special fund. This fund is distributed to Vega holders based on the amount of tokens they hold or stake. The revenue sharing incentivizes Vega holders to support Nebula’s success.
  • Dual Rewards: Vega holders who also hold NEB tokens receive boosted rewards or special privileges, such as lower trading fees or higher staking yields.
  1. Governance Integration
  • Dual Governance: Allow vega holders to participate in certain Nebula governance decisions, especially those related to profit-sharing agreements or major technological changes that involve Vega’s legacy tech.
  • Veto Power: Vega holders could have a “veto power” or a special voting mechanism on specific high-impact decisions in Nebula’s governance, ensuring that the interests of the original Vega community are considered.
  1. Token Swap or Buyback Mechanism
  • Optional Token Swap: Provide an option for Vega holders to swap their tokens for NEB at a favorable rate if they choose to migrate fully to the new ecosystem.
  • Buyback and Burn: Nebula Exchange can commit to using a portion of its profits to buy back Vega tokens from the market, effectively reducing the supply and increasing the value for holders. Bought-back Vega tokens could be burned or used for additional rewards.
  1. Ecosystem Collaboration
  • Shared Ecosystem Tools: Enable Vega tokens to be used in certain ways within the Nebula ecosystem, such as staking for liquidity pools or access to exclusive trading tools, creating a bridge between the two communities.
  • Partnerships and Integrations: Develop collaborative projects or products where both NEB and Vega are used, such as a decentralized finance (DeFi) platform or a launchpad for new projects that leverages both tokens.
  1. Airdrop or Loyalty Program
  • Airdrop to Vega Holders: Nebula Exchange could airdrop a small amount of NEB tokens to Vega holders as a goodwill gesture, further tying the success of Nebula to the legacy Vega community.
  • Loyalty Rewards: Establish a loyalty program where VGT holders who actively use Nebula’s services receive additional NEB tokens or trading fee discounts, encouraging long-term engagement.
  1. Technology Integration with Vega
  • Shared Technology Fund: Create a joint innovation fund where Nebula and Vega can co-develop new technologies, with Vega holders having a say in how the funds are used. Profits from successful projects would be shared between NEB and Vega holders.
  • Cross-Chain Features: Enable cross-chain features where Vega can be used in Nebula’s decentralized exchange (DEX) offerings, or even in other projects, creating more utility and liquidity for Vega.
  1. Marketing and Branding Synergy
  • Co-Branding Initiatives: Market the transition as a partnership rather than a discontinuation. Use co-branded campaigns to highlight the new opportunities for both Vega and Nebula communities, emphasizing how Vega holders stand to benefit.
  • Joint Ventures: Announce joint ventures where both Vega and NEB tokens are crucial for participation, such as exclusive , DeFi projects, or NFTs, ensuring continued interest in Vega’s legacy while boosting Nebula’s growth.
  1. Token Burn Events
  • Milestone-Based Burns: For every significant milestone Nebula achieves (like hitting a specific trading volume), a percentage of NEB tokens are burned, and an equivalent percentage of Vega tokens are airdropped to Vega holders, reducing NEB supply while rewarding the Vega community.
  1. Dynamic Tokenomics
  • Adaptive Rewards: Implement a dynamic reward mechanism where the percentage of trading fees allocated to Vega holders can increase based on Nebula’s performance, tying the rewards directly to the success of the exchange.
  • Liquidity Pool Participation: Allow Vega holders to contribute to liquidity pools on Nebula in exchange for both NEB and a share of the trading fees, providing another avenue for earning rewards.

By implementing this dual-token strategy, Vega Protocol can ensure that its original community is not only preserved but also rewarded for the ongoing success of the technology through Nebula Exchange. At the same time, Nebula gains a loyal user base and can leverage Vega’s technology to enhance its offering. This creates a symbiotic relationship that can drive the success of both entities.

1 Like
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Something like that would be a better option than just to scrap vega token and vega chain .
This is just a rough idea I know it is too late for something like that or even possible but there are surely other ways to keep the token alive

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Why to do so much overcomplicated things?

Why you want to keep the VEGA token operating and create the NEB token at the same time?
I think you do not trust new team. I understand it, but When Vega network stop operating and Nebula network is started and then Nebula is f***ed, the Vega token will be worth 0 as I understand correctly because there will be no network that you can use your VEGA token on.

I think it would be very hard at the moment to implement something like you proposed I have never saw a chain that has two kind of voting tokens, and I believe Vega protocol does not support it as well.

You proposed a lot of changes that would introduce a lot of work, and may introduce bugs in all the areas starting from the protocol implementation to the contracts changes.

Veto Power

You have it now and you will have it in the NEB chain. As vega holder I can vote against proposals.

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there’s a simpler solution that allows the Vega token and chain to continue existing while still enabling Nebula Exchange to leverage Vega’s technology. This approach involves creating a symbiotic relationship between the two ecosystems without introducing a new token or significantly altering the existing Vega network. Here’s how it could be done:

  1. Vega Token Staking and Revenue Sharing

a. Staking in Nebula:

  • Staking Pool: Allow Vega token holders to stake their tokens in a special staking pool that is recognized by Nebula Exchange. By staking their Vega tokens, users become eligible to receive a portion of Nebula’s trading fees.
  • Revenue Sharing: Nebula Exchange commits to allocating a percentage of its trading fees (e.g., 10-20%) to the staked Vega token holders. The rewards are distributed proportionally based on the amount of Vega tokens staked.

b. Continuous Operation of Vega Network:

  • Vega Network Utility: The Vega chain continues to operate as it is, maintaining its original functionality. The staking mechanism is a smart contract layer that interacts with Nebula but doesn’t require changes to the Vega chain itself.
  • Ongoing Governance: Vega token holders retain their governance rights over the Vega network, allowing the community to continue managing and evolving the protocol as needed.
  1. Cross-Platform Utility

a. Cross-Platform Use:

  • Vega Tokens on Nebula: Nebula could allow Vega tokens to be used on its platform in various ways, such as paying for trading fees, staking in liquidity pools, or participating in Nebula’s governance decisions that specifically relate to the revenue-sharing pool. This creates additional utility for Vega tokens.
  • Nebula Features on Vega: Vega could also incorporate certain features or markets offered by Nebula, creating a bridge where users can benefit from both platforms.

b. Integrated Rewards:

  • Dual Rewards: Users who hold and use Vega tokens on both the Vega chain and Nebula Exchange could receive additional benefits, such as discounted fees on Nebula or bonus staking rewards. This incentivizes active participation in both ecosystems.
  1. Joint Development Fund

a. Shared Innovation:

  • Development Fund: Establish a joint development fund where a portion of Nebula’s profits is allocated to further develop and enhance the Vega protocol. This fund could be managed by both Vega and Nebula stakeholders, ensuring continuous improvement of the Vega network.
  • Collaborative Projects: Both platforms could work on collaborative projects, such as new DeFi tools or advanced trading features, that benefit both ecosystems. The development fund could help finance these initiatives.

b. Marketing Collaboration:

  • Co-Branding: Both Vega and Nebula could engage in co-branded marketing efforts, emphasizing their partnership and the benefits of holding and using Vega tokens on both platforms. This would attract users from both communities and enhance the visibility of the tokens and the technology.
  1. Simplicity and Minimal Disruption

a. Minimal Changes to Vega:

  • No Forks or Major Updates: The proposal requires minimal changes to the existing Vega network, avoiding the need for forks or major protocol upgrades. The staking and revenue-sharing mechanisms can be implemented through smart contracts and off-chain agreements.
  • Gradual Integration: The integration with Nebula can happen gradually, allowing the community to adapt and explore the new opportunities without any sudden shifts.

b. Focus on Community and Utility:

  • Community Engagement: Keep the community informed and involved in the transition. Explain the benefits of staking Vega tokens on Nebula and how the two platforms will work together.
  • Enhanced Utility: By creating additional use cases for Vega tokens within the Nebula ecosystem, the token retains its value and relevance, even as the new exchange gains traction.

This simpler solution allows Vega token and chain to continue existing while benefiting from Nebula Exchange’s success. By enabling staking and revenue-sharing, and creating cross-platform utilities, the two ecosystems can work together in a way that adds value to Vega token holders without requiring significant changes to the existing infrastructure. This approach ensures that the Vega community remains engaged and that the Vega network continues to thrive alongside Nebula.

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Vega Network Utility: The Vega chain continues to operate as it is, maintaining its original functionality. The staking mechanism is a smart contract layer that interacts with Nebula but doesn’t require changes to the Vega chain itself.

Hmmm but you have to keep validators both for Vega and the Nebula. Who and how will pay Validators on the Vega and Nebula if now there is no enough rewards for validators (ref: Vega Discord general channel). Will you increase fees on vega and take token lower on the market?

Minimal Changes to Vega

Could you name what changes are required? Because based on the Vega docs(https://docs.vega.xyz) and specs(GitHub - vegaprotocol/specs: Specs, designs and requirements 🦔) there will be required more changes than you probably assume initially. Chain cooperation is not possible now.

I am not negating your proposal, but as a advocate of devil, it is very shallow and does not cover a lot of things in the details, especially time frame. I think it may need some comments from Vega development team and the Nebula team as well.

b. Focus on Community and Utility:

This is problem at the moment, there is no strong community that is involved into marketing, trading, etc. As I can see:

  • there are a few community members that are active and tries to do something(they opened forum discussions before and showed they want to be involved)
  • there is a lot of people complaining on the discord. They complained a lot but they did nothing to help improve the chain - no single official proposal created, nor action taken.

I was following Vega from the beginning and Vega as a software development team cannot be involved into the incentivizing the trading or exchanges. It was given into community hands but the community took very minimal actions until Nebula proposed something.

They proposed some actions that are reasonably described. They showed something possible with current network and the software state.

Without action Vega is going to be worth 0. Validators are leaving(see last BHarvest leave - they announced it on the Twitter month ago and they left or will leave soon and other validators earlier). Probably more and more validators will leave and one day the network will just stop because 1/3 validators will be annoyed.

Your proposal even if it is nice, it’s not ready to do something now, it’s not well described what needs to be done, what changes are required in details.

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This is a good and well thought out idea