Community Trust ScoreVerified
Polkadot is a sharded protocol that enables blockchain networks to operate together seamlessly.
Acala Network won the first Parachain Auction on Polkadot Network. Thus, Acala will be onboarded at block #8179200 [Dec. 18] at the beginning of lease 6 with the other first 5 auction winners. Over 81K network stakeholders locked up DOT in favor.
Acala is an Ethereum-compatible smart contract platform optimized for DeFi on Polkadot. Acala are well known for their crowdloans. Joining the Acala Crowdloan to support the launch on Polkadot is like owning a piece of the new financial system.
For clarity about crowdloans, DOT holders lock their tokens on Polkadot for a period of 2 years to help Acala lease a parachain slot and gain access to Polkadot’s plug-and-play security. In return for DOT holders’ loans, ACA will be distributed to participants.
DOT tokens will be returned to holders following the 2 year parachain slot lease. It can be seen as a community-backed launch for individuals looking to contribute to the growth of Acala’s network and applications.
The ACA distributed to participants will be vested over a period of time, but the full balance can be used to participate in governance and other activities. This helps us to build a strong and well-intentioned community.
Why host a crowdloan? Polkadot is a decentralized, multi-chain network that allows blockchains to connect for interoperability, scalability, and plug-and-play network security. To join Polkadot’s network, all parachains must participate in and win an auction to earn a slot on the network. Parachains can choose to raise DOT in a variety of ways in order to participate in the auction.
When Acala wins a parachain slot auction, the network will begin to launch on Polkadot and Acala will distribute ACA to crowdloan contributors. Acala supporters will be distributed ACA to the same account they used when contributing DOT to the crowdloan. The amount of ACA distributed is dependant on the amount of DOT contributed.
Acala has chosen to host an crowdloan to trustlessly crowdsource ACA, which will be used to participate in the Polkadot parachain auction. These ACA will be bonded, or ‘locked’, in the Polkadot Relay Chain for the duration of Acala’s parachain lease and cannot be touched by the team.
17% of the total ACA supply will be distributed during the Crowdloan. The individual ACA reward amount depends on the total amount of DOT contributed to the Acala Crowdloan.
The minimum contribution varies by participation method. Liquid Crowdloan contributions require users to hold a minimum balance of 2.1 DOT. Direct contributions and contributions made via mobile wallet require users to hold a minimum balance of 6.1 DOT.
Those who are interested might want to understand the difference between Direct contribution and liquid crowdloan.
