Acala, the Polkadot DeFi network, and its sister chain Karura on Kusama have announced plans to cease operations on February 10, 2027, ending a run of about seven years. The proposal still needs approval in two governance votes.

@AcalaNetwork and @KaruraNetwork said the closure depends on the outcome of Acala Referendum #195 and Karura Referendum #137, according to Crypto Briefing. If both pass, the networks will stop producing new blocks after the shutdown date.

Why the Networks Are Closing

The teams point to liquidity fragmentation across the Polkadot and Kusama ecosystems as the main reason for winding down. ETHNews notes that Polkadot's shared-security model can support independent blockchains, but it does not guarantee enough trading volume, collateral demand or fee income to sustain every application-specific network. It adds that the team's explanation should be treated as the project's own view, as no independently verified liquidity figures were provided.

The two projects have a notable place in Polkadot's history. ETHNews reports that they secured the first parachain auction slots on Polkadot and Kusama, respectively. The networks offered decentralized trading, liquid staking and collateral-based services.

What Users Need to Do

Users are advised to withdraw external and bridged assets before the deadline. That includes $DOT, $KSM, $USDT and $USDC. Native $ACA and $KAR tokens cannot be withdrawn to other networks and will remain locked on their respective chains once validators stop producing blocks, per Crypto Briefing.

Liquid staking positions carry earlier cutoffs. Crypto Briefing reports that LDOT must be unbonded by January 12, 2027, and LKSM by February 2, 2027. According to ChainCatcher, LKSM unbonding takes seven days. ChainCatcher also reports that the team will try to return unwithdrawn external assets, with recoverable assets sent as a last resort to the same account address on the Polkadot or Kusama Asset Hub. It cautions that not all assets can be returned this way.

ETHNews advises readers to confirm the staking cutoffs against the original governance documents before acting. Key items to watch include the referendum results and whether other Polkadot projects absorb users who relied on Acala's services.

Sources

Crypto Briefing: Acala and Karura plan permanent shutdown on February 10, 2027

ETHNews: Acala and Karura plan shutdown, key deadlines for token holders

ChainCatcher: Acala and Karura plan to stop block production on February 10, 2027