Acala Token

What is the Acala (ACA) token?

Acala (ACA) is the native utility token of the Acala Network, which positions itself as the DeFi hub of Polkadot. The network aims to provide a suite of financial applications and services, including a decentralized exchange (DEX), a stablecoin platform, and staking facilities. Acala’s infrastructure is designed to enable scalable, secure, and interoperable DeFi applications on the Polkadot network.

Tokenomics

• Total Supply: 1,600,000,000 ACA.

• Allocation:

• Community: 49.76%

• Founding Team: 20.25%

• Early Backer: 18.33%

• Backer: 11.66%[15].

Market Data

As of today 16 May 2024, the price of Acala Token is ₹9.46 INR, with a 24-hour trading volume of 3552403.34 USD. The market capitalization for Acala Token is 100037784.26USD. The circulating supply is 962499997 Acala Token, with the total supply also being 1000000000 Acala Token.

Token Pros and Cons

Pros:

• Interoperability:

• Built on Polkadot, ACA benefits from cross-chain interoperability.

• Utility:

• ACA serves multiple purposes within the Acala ecosystem, including governance, transaction fees, and staking.

• Community Governance:

• ACA holders can participate in the governance of the network.

• DeFi Ecosystem:

• Acala offers a comprehensive suite of DeFi services.

• Scalability:

• Leveraging Polkadot’s technology for scalability.

Cons:

• Competition:

• Faces stiff competition from other DeFi platforms.

• Complexity:

• The multifaceted nature of its ecosystem may deter new users.

• Market Volatility:

• Like all cryptocurrencies, ACA is subject to market fluctuations.

• Regulatory Risks:

• Potential regulatory changes could impact operations.

• Technical Risks:

• As a complex platform, there are inherent technical risks.

Why Should You Invest in the Coin?

• Innovative DeFi Solutions:

• Acala’s unique DeFi offerings on Polkadot.

• Strong Community and Governance:

• Active community involvement in governance.

• Growth Potential:

• As DeFi grows, Acala is well-positioned to benefit.

• Interoperability:

• Cross-chain interoperability enhances its utility.

• Ecosystem Support:

• Backed by Polkadot, offering technical and community support.

USP of the coin

• DeFi Hub on Polkadot:

• Acala’s unique positioning as the DeFi hub of Polkadot.

• Comprehensive DeFi Services:

• Offering a wide range of DeFi applications.

• Cross-Chain Capabilities:

• Enhanced interoperability with other blockchains.

Problem the coin is solving

Acala aims to solve the issues of interoperability, scalability, and usability in DeFi by providing a comprehensive, interoperable, and user-friendly DeFi platform on the Polkadot network.

Founder and team background

• The Acala Network, a key DeFi player within the Polkadot ecosystem, was co-founded by Bette Chen and Ruitao Su, emerging from a collaboration between Laminar and Polkawallet.

• Chen has driven Acala's vision as a DeFi hub with a governance system that includes the General Council and ACA Referendum, fostering community-driven development. Su, serving as CEO, brings a strategic outlook and a commitment to creating an accessible DeFi platform.

• The Acala Foundation supports DeFi growth on Polkadot, aiming for a community-owned platform. Under Chen and Su's leadership, Acala has achieved notable milestones like securing a Web3 Foundation grant and winning a Parachain auction, establishing it as a leading protocol in the DeFi space.

ICO Price

The Acala Token (ACA) had several funding rounds with different terms and conditions. Here are the details of the ICO and other strategic sales:

Seed Sale

• Sale Price: $0.00765

• ROI: 14.85x (1384.96%)

• All-Time High (ATH) ROI: 379x (37756%)

• Raise: $1.4M

• Tokens For Sale: 183,300,000 ACA

• Status: Ended

ICO

• Sale Price: $0.67

• ROI: 0.17x (83.00%)

• ATH ROI: 4.32x (332.23%)

• Raise: $12M

• Status: Ended

Strategic Sale

• Sale Price: $0.06

• ROI: 1.89x (89.33%)

• ATH ROI: 48.27x (4726.66%)

• Raise: $7M

• Tokens For Sale: 116,600,000 ACA

• Status: Ended

Additional Token Sale

• ROI: 0.169x (83.05%)

• ATH ROI: 4.32x (332.23%)

• Raise: $12M

• Tokens For Sale: 47,000,000 ACA

• Status: Ended

The Acala Network is described as an all-in-one DeFi platform that allows users to stake, swap, borrow, lend, earn, and more, all with micro gas fees. The tokenomics of ACA are distributed among the community, founding team, early backers, and other backers with the following allocations:

• Community:

• 49.76% (497,600,000 ACA)

• Founding Team:

• 20.25% (202,500,000 ACA)

• Early Backer:

• 18.33% (183,300,000 ACA)

• Backer:

• 11.66% (116,600,000 ACA)

The Acala Token (ACA) is part of the Polychain Capital Portfolio and is categorized under DeFi. The current circulating supply is 962,499,997 ACA, which is 60.16% of the max supply of 1,600,000,000 ACA.

Risks Associated in Investing in the Coin

• Market Competition:

• Acala faces competition from established and emerging DeFi platforms.

• Regulatory Uncertainty:

• Changes in regulations could impact Acala’s operations.

• Technical Challenges:

• Potential bugs or vulnerabilities in the platform.

• Adoption Rate:

• The success of ACA depends on user adoption of the Acala platform.

• Dependence on Polkadot:

• Acala’s performance is tied to the success and stability of the Polkadot network.

Whitepaper Insights

The Acala whitepaper outlines the technical and economic framework of the Acala Network, a decentralized finance hub built on the Polkadot blockchain. It introduces Acala as a solution to the existing limitations in the DeFi space, including lack of interoperability, scalability issues, and complex user experiences. The whitepaper details the network’s core components, such as the Acala Dollar (aUSD) stablecoin, the Acala decentralized exchange (DEX), and the platform’s staking and governance mechanisms.

Acala’s economic model is designed to ensure the stability and utility of the ACA token within its ecosystem. The token serves multiple functions, including paying transaction fees, participating in governance through voting, and contributing to the network’s security via staking. The whitepaper also discusses the tokenomics of ACA, including its distribution, supply mechanisms, and incentives for various stakeholders.

The technical section of the whitepaper delves into Acala’s architecture, highlighting its multi-chain integration with Polkadot for enhanced interoperability and scalability. It explains how Acala leverages Polkadot’s shared security model and parachain architecture to facilitate cross-chain asset transfers and interactions between different blockchain networks.

Furthermore, the whitepaper addresses the governance structure of the Acala Network, emphasizing a community-driven approach where ACA token holders have a say in key decisions, including network upgrades and treasury management. It outlines the procedures for proposing and voting on governance proposals, aiming for a transparent and inclusive decision-making process.

In conclusion, the Acala whitepaper presents a comprehensive vision for a scalable, interoperable, and user-friendly DeFi platform. By leveraging Polkadot’s technology and adopting a community-centric governance model, Acala aims to address the current challenges in the DeFi space and pave the way for a more accessible and efficient decentralized financial ecosystem.