ACA token, the native governance and utility asset of Acala Network, will be enabled for token transfers on January 25th at around 5 am UTC.
On January 18, Acala Network, a decentralized finance (DeFi) platform built for the Polkadot ecosystem, announced via Twitter that token transfers on Acala will be enabled on January 25th allowing users to transfer tokens like Acala Network (ACA) and Liquid Crowdloan DOT (LCDOT) between accounts. Once token transfers and DeFi protocols like a USD stablecoin and Acala Swap are enabled, LCDOT holders will be able to make use of its underlying DOT liquidity.
What Are The Specifications Of ACA Token?
ACA which happens to be the native asset of the Acala Network facilitates several uses and governance mechanisms within the Acala ecosystem. ACA tokens can be used to pay network transaction fees, stability fees as interest on aUSD loans when using the Honzon stablecoin protocol. These various platform fees can also be paid by the user in aUSD, which is subsequently exchanged to ACA via the protocol’s built-in exchange feature. After the ACA token is received as payment, it is burned and permanently removed from the token supply. ACA is also burned during liquidations on the platform.
Acala Network’s native token is also slated to take on an increasingly important role in platform governance as Acala plans to implement a gradual, multi-phase decentralization approach that will shift from on-chain centralized councils via the Acala Foundation to a more decentralized form of referendum-based governance via ACA token holders.
Stablecoins that run on the Acala Network (such as aUSD) are designed to be 100% transferable to all blockchains within the Polkadot network once Acala is selected to become a parachain via the parachain slot election process. Acala’s parachain election is slated to boost aUSD’s liquidity and adoption within the Polkadot ecosystem, and may also allow the asset to be used on external blockchain networks in the future.
The First Parchain On Polkadot
Earlier last month, Acala Network, revealed that it has officially won the first parachain slot auction on Polkadot, signaling that the team can begin to onboard its customized, layer-1 network to Polkadot’s Relay Chain. Over 190,000 unique contributors locked 32.5 million DOT in support of the Acala Crowdloan with 24.1 million DOT contributed to the Liquid Crowdloan vault, ensuring that a substantial portion of crowdloan liquidity will be unlocked and accessible for various DeFi use cases on Acala.
