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Acala wins First-Ever Polkadot Parachain Auction, Raises 32.5M DOT

Acala, a decentralized finance (DeFi) protocol operating on the Polkadot (DOT) network, had won the first-ever Polkadot parachain auction and raised a total of 32.5 million DOT, worth around $1.28 billion, from 24,934 contributors via an initial coin offering (ICO) structured as a crowdloan.

It has been reported that Acala would eventually need to pay back the DOT it had solicited from investors as the proceeds are classified as 'crypto debt.'

However, users' DOT is locked for the duration of the rental agreement for Polkadot's parallel chains up for sale. Polkadot is an inter-chain smart contract network that enables the transfer of assets between its parachains. Earlier this month, its developers deployed the first parachain for auction.

The report said that the technology is still undergoing heavy development. Nevertheless, as of November 18, Polkadot projects have raised over 87.6 million DOT ($3.44 billion).

Likewise, the second Polkadot parachain auction is ongoing, with the spot up for leasing for the next two years. Currently, the projected winner is Moonbeam, an Ethereum (ETH) compatible smart contract platform designed for building interoperable applications. It is in active development and expected to launch its mainnet by the end of the year.

Moonbeam has raised 34.28 million DOT, or around $1.35 billion, in its auction from over 46,000 contributors. Investors will receive one Moonbeam (GLMR) token for each DOT they pledge, with 30% of rewards immediately available for claiming, and the remaining 70% shall vest throughout the 96-week lease.

Thus, the reward pool consists of 100 million, or 10%, of its token supply of 1 billion. GLMR's token inflation stands at 5% per annum.

Source: Cointelegraph



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