The central theses
- Acala has secured a parachain on Polkadot.
- The DeFi project narrowly beat Moonbeam in Polkadot’s first candle auction.
- Parachain auctions are scheduled to take place weekly through November and December. The second batch starts on December 23rd and runs every 14 days until early 2022.
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Acala received DOT 32.5 million worth $ 1.27 billion for the auction.
Acala secures the Parachain slot
Acala won the first Parachain auction from Polkadot.
With over 32 million DOT from over 81,000 community members, Acala won the first Parachain auction on @Polkadot!
Thank you to everyone who attended this historic event. (1/3) pic.twitter.com/CL2jCwA9Re
– Acala – DeFi Hub by Polkadot (@AcalaNetwork) November 18, 2021
The smart contract platform, which sells itself as Polkadot’s DeFi hub, announced the news late Thursday after a seven-day auction. “Thanks to everyone who took part in this historic event,” said a tweet. “We look forward to starting the multi-chain future with you!”
Dan Reecer, VP of Growth at Acala, told Crypto Briefing that while the team had “no expectation” of winning, they were happy with the outcome. He added:
“We knew the polkadot community was thriving and incredibly supportive of all of the Parachains. We have worked hard to educate the community, get them involved in the Polkadot wallet, and support them throughout the process. So it is fantastic to see that in the end over 81,000 participants support Acala. ”
Acala received 32,515,989.5 DOTs worth approximately $ 1.27 billion from 81,218 contributors. Based on the total DOT received, Acala will distribute 105,893,309.1 ACA tokens to its contributors. In addition, 24,116,159.8 LCDOT tokens will be distributed to Crowdloan supporters for use on the Acala network. LCDOT is a liquid token that represents DOT while locked.
Acala is one of the leading projects based on Polkadot. It hopes to become DeFi’s home on the network, with plans to launch products like an automated market maker, liquid DOT staking, and a decentralized stablecoin called aUSD. Acala also optimizes interoperability with the Ethereum Virtual Machine.
To join the network, projects must secure one of 100 parachains, individual blockchains connected to Polkadot’s relay chain to make the network scalable and interoperable.
Polkadot is currently running auctions for projects wishing to join the network. At each auction, the projects must collect funds in the form of Polkadots DOT tokens from their respective communities. The DOT is locked until the parachain lease expires. Native tokens are typically projected to reward users for providing DOT. In this case, the contributors will receive the ACA token from Acala.
The first Parachain auction started last week and saw fierce competition between Acala and the cross-chain platform Moonbeam. Shortly after the start, both projects had collected millions of DOT tokens, clearly outperforming every other participant. Interestingly, data from DotMarketCap shows that Moonbeam received more DOT than Acala with 34,161,504 tokens, but Acala won due to the candle auction format.
The auction winner was determined by the project that had the most DOT contributions at a randomly selected point. The candle went out on November 15th at 8:32:42 pm, at which time Acala was leading. The Moonbeam team congratulated Acala on winning the slot, commenting, “The success of Polkadot will be reflected in the activity that all of its parachains will bring into its ecosystem.”
Reecer told Crypto Briefing that Acala will launch on December 18 with plans to roll out its Liquid DOT staking, aUSD stablecoin and automated market maker next year. “We are really excited about everything that is to come in 2022 and beyond,” he said. Acala has the Parachain lease which expires on October 20, 2023.
The first Parachain auctions are scheduled to take place weekly from November to December, with the next one starting today. Initially, 11 slots will be auctioned. The second auction series starts on December 23rd and runs every 14 days. Each is supposed to last seven days.
Disclosure: At the time of writing, the author of this role owned ETH and several other cryptocurrencies.
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