Acala is launching another staking program for Acala network owners. This is coming after a successful first round of the staking program.
An estimate of $200,000 worth of network-acquired surplus will be used to buy back ACA to be distributed as ACA-aUSD-LP tokens to stakers.
The program will run for 3 months, starting on the 4th of August 2022, with rewards In ACA-AUSD-LP tokens and a loyalty bonus of 50%.
The loyalty period will run for 90 days.
The idea of the proposed buyback of ACA from the $200,000 worth of network surplus will prevent the dilution of ACA token value through inflation.
Instead, it will be donated as ACA-AUSD-LP tokens to a collateral staking rewards vault which will enable ACA stakers to earn a share based on the amount of ACA staked.
The rewards derived from staking are an incentive for users and community members to lock up their tokens. Consequently, this will remove them from circulation and create scarcity, thereby giving more value to ACA. This creates a win-win situation for the network, users, and community members.
Participating community members also increase their network percentage ownership while they receive aUSD in the form of ACA -aUSD-LP tokens.
Also, by holding ACA-aUSD-LP, ACA stakes are automatically provided for ACA-aUSD trading pair on Acala swap which allows for passive earning from trading fees.
Stakers can also at any time decide to redeem their LP tokens for the underlying ACA and aUSD. Assets will be distributed by Acala every five blocks until the reward pool is exhausted.
Full staking rewards are only paid when the participants lock in their ACA tokens for the entirety of the staking program’s duration.
About Acala
Acala is a decentralized finance network and credit system that is created to facilitate or provide liquidity to the Polkadot, Kusama multichain, and a wider web3 ecosystem.
The main product of Acala is the aUSD which is a multi-collateral, crypto-backed stablecoin that serves as the native stablecoin for the Dotsama eco-system.
Acala is also Ethereum compatible with in-built Defi protocols which developers leverage to build applications.
It also possesses a staking derivative (LDot), a decentralized exchange (Acala Swap), and EVM+ which is an improved version of EVM that offers a fully Ethereum-compatible development environment that has full Substrate compatibility.