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Acala Launches Initial ACA Staking Program, Leveraging ACA Buybacks With Network-Owned Staking Rewards

Acala has launched the inaugural ACA staking program for network owners around the world! Given the fixed ACA supply, this is a unique opportunity for ACA holders to increase their percentage share of the network while getting to know the Acala Apps. Participants will simply stake their ACA on the Acala parachain and earn rewards over a fixed duration. After the staking program ends, users will be able to unstake their ACA and use them for whatever they’d like.

ACA Staking, Zero Inflation

The first ACA staking program is being done in a new way. Instead of printing tokens and decreasing the value of existing ACA tokens, Acala is doing a buy-back of ACA tokens using network-owned staking reward surplus. DOT held by Acala have been staking and earning staking rewards. The staking reward surplus has been used to buy back ACA in order to distribute to token holders participating in the staking program. Staking rewards will be issued every 5 blocks, and will end after the ACA reward pool has been distributed to participants. To earn the full staking reward, users will need to stake their ACA for a full four months and not claim their ACA rewards until the program ends. The rewards are distributed to those who are willingly removing ACA from circulating supply via staking, which creates a positive feedback loop.

The ACA token supply is fixed and non-inflationary, meaning tokens are not printed and issued into the supply to pay staking rewards. This allows ACA holders to maintain and grow their percentage share of the network. Parachains, by nature, get security via Polkadot’s proof of stake mechanism where staking is required. However, part of the benefit of being a parachain is that you don’t need to print inflation in order to pay staking rewards to validators, since parachains don’t have validators. When parachains have constant staking programs running, it simply awards tokens issued that become less and less of a percentage share of the network over time.

Start Staking ACA today

In order to participate, you simply need to hold ACA in your wallet, navigate to the Acala Apps webpage, and find staking under the Collateral Staking page. Follow this guide for getting started or go to the Acala Apps to start staking.

While you’re in the Acala Apps, you may take a look at the other DeFi opportunities going on right now. Acala is currently offering 1 million ACA rewards in the liquidity mining program. Keep in mind, since Acala is still in launch mode, it’s advisable that only our most adventurous supporters participate during this Early Adopter Phase.

How ACA Is Used on Acala

ACA is the utility token that operates and governs the Acala parachain, a decentralized finance network powering the aUSD ecosystem. ACA has several uses within the Acala blockchain including:

  • Transaction Fees: Powers the micro gas fees and smart contract execution.
  • Node Incentivization: Incentivizes network nodes to monitor and relay messages to Polkadot.
  • Governance: Empowers the community to vote, elect council members, and drive the development of Acala.
  • Algorithmic Risk Adjustment: Auto-adjusts risk parameters such as interest rates or collateral ratio.
  • Pallet Deployment: Allows teams to deploy new Substrate pallets on the Acala blockchain by staking ACA.

Get To Know Acala

Acala is a decentralized finance network powering the aUSD ecosystem. The parachain, built on Polkadot, is built around the aUSD stablecoin, the native, decentralized stablecoin of the Polkadot and Kusama ecosystem. As a crypto-backed, over-collateralized stablecoin, aUSD is poised to become the default quote and routing asset of the Polkadot and Kusama ecosystem. Acala’s supporting products, the DEX, DOT liquid staking, and EVM+ environment all support the growth, stability, and utility of aUSD.

Aside from crypto-native applications, Acala’s DeFi ecosystem is also being integrated into the world of FinTech and neobanks, starting with Current.com. Current is integrating with Acala’s layer-1 blockchain as a DeFi backend, providing yield to its 3 million US-based App customers in this hybrid finance (HyFi) integration.

About Acala

Acala is a decentralized finance network powering the aUSD ecosystem. The blockchain has built-in DeFi protocols for application developers to leverage, including a decentralized stablecoin (aUSD), a trustless staking derivative (liquid DOT — LDOT), and a decentralized exchange. The network is also Ethereum-compatible, leveraging the Acala EVM+ to provide an environment that combines EVM + Substrate functionality.

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Acala is the decentralized financial hub of Polkadot that makes it fast and easy to use or build financial applications, improving trading efficiency and saving valuable time. The platform offers a suite of DeFi primitives including a stablecoin, DEX, and staking deritatives.

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Dan Reecer

Dan Reecer

Chief Growth Officer @ Acala and Karura. Previously launched Polkadot and Kusama @ Web3 Foundation.

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