Acala network has grown beyond the original ACA scope which has limited utility to support new growth based on new infrastructure and protocols built. The Exodus Upgrade aims to align stakeholders, participants within the Acala ecosystem, protocol functionalities and network infrastructures, and ACA as a utility and securing element of Acala Network. It will optimize for network growth, sustainability and safety by boosting ACA utility and ACA holder engagement.
The following documentation outlines the intended features and processes that Acala Exodus Upgrade intends to implement in the future. This document will continue to be updated and reviewed as we progress with the Exodus Upgrade. Please note that certain sections may contain inaccuracies or outdated information.
The following are new ACA utilities in addition to existing utilities such as used as transaction fees, vote in governance proposals, pallet deployments etc.
- ACA Staking
- Ecosystem token contributions are farmable via staked ACA
- Vote for emission distribution to liquidity pools and dApps
- A portion (e.g. 20% via governance) of staked ACA can be used as a mitigation tool in case of a shortfall event within the protocols that are native to Acala
ACA will also power captive liquidity with the following initial long-term incentivized liquidity pools in Acala Swap
- ACA to DOT
- ACA to USDT (or USDC)
- LSDs to DOT
- LSDs to USDT (or USDC)
- LSD to LSD
- DOT to USDT (or USDC)
- aUSD to DOT (or aSEED-DOT after aSEED launch)
Acala will have a total of 100 million ACA emissions per year limited to 6 years upon governance approval. 50% of the emission will be reserved for ACA staking, and 50% reserved for yield farming for liquidity pools, dApps built on the Universal Asset Hub (UAH), and other avenues that help build liquidity and adoption.
A portion of unspent emissions will be burned periodically e.g. 1% unspent emission every month, a portion of the network fees accumulated over a period of time will also be burned e.g. cumulative network fees will be recorded every six months, and 20% will be burned via governance. This overtime may make ACA deflationary.
Note: Karura KAR will follow the same upgrade with 1/10 of the emission as ACA.