Vega's Business Model

Can you share a bit more info about Vega’s business model?

It’s difficult to talk about the project and ignore questions about its long term financial sustainability. Maybe you could very vaguely describe Vega’s strategy. Any answer will be greatly appreciated :pray:

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Hi @Marcin, Vega is an open public blockchain not unlike Ethereum or Bitcoin (though vega is proof of stake not proof of work), and will be open sourced at some point, so ultimately its long term future depends on the success of the network and the value created for everyone in the ecosystem, including those developing the code as well as people who run nodes and use the protocol itself.

From a perspective of validators operating the network and other participating by creating markets or trading, Vega contains a sophisticated incentive mechanism to fairly reward all participants (rewards come from trading fees) and encourage actions that benefit the whole community.

When it comes to up front development and the current team, initially, the costs of building Vega have been covered by privately raising funding, however that will eventually (likely over the course of several years) give way to a long term sustainable community/ecosystem based model. Part of this will be contributions of code/work to the open source repositories from users who want to improve Vega for their own ends, but there will also more than likely some way as part of the governance/incentives model, built into the protocol itself, for individuals and teams to be paid for their work if it’s useful to the community. For instance, this might take the form of something like an “on chain treasury” that can award grants, similar to the models seen in some other projects. However no decisions have been made on this yet and any strategy would be developed with the Vega community.

There will never be any form of fees or costs paid directly to Vega (or any other company or individual) for using Vega. If the protocol distributes funds collected in fees, that will be in a way that’s open to anyone who meets the criteria.

There will be more information shared on the protocol specifics around all this, including fees and rewards, the proof of stake model (staking and delegating), etc. in the coming months… watch this space!


Thank you so much @barney. :pray: This gives me a good idea about the future business model and how proof of stake/vega token could be part of it.

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