Acala’s shutdown is a microcosm of Polkadot DeFi’s liquidity woes: parachains are fragmented, and costs exceed returns. The exit of early chains could accelerate an ecosystem shake-up. $DOT $USDC $USDT
Flash: Acala and Karura propose shutting down on February 10, 2027; most of Polkadot’s early parachains are in the same boat
BlockBeats News, November 11: The Acala team has formally submitted an on-chain governance proposal, Referendum #195, proposing an orderly sunset of the Acala network on Polkadot. Meanwhile, its sister chain on Kusama, Karura, has also launched the corresponding Referendum #137. If both referenda pass, the two chains will stop producing blocks on February 10, 2027, ending approximately seven years of operation. In an open letter to the community, the team explicitly stated that the reason is that DeFi liquidity depth in the Polkadot and Kusama ecosystems has remained insufficient and is further fragmented by the multi-parachain structure. Operating costs now exceed returns, making continued operations unsustainable. Under the proposal, if it passes, users must withdraw their external assets themselves before February 10, 2027, including DOT, KSM, and USDT, USDC, and other assets brought in via cross-chain bridges. Liquid staking products have earlier deadlines: users must begin unlocking validator-bonded LDOT by December 16, 2026; ordinary LDOT must be submitted for unbonding by January 12, 2027; and LKSM must be unbonded by February 2, 2027. The native tokens ACA and KAR cannot be withdrawn cross-chain and will eventually
Flash: Acala and Karura propose shutting down on February 10, 2027; most of Polkadot’s early parachains are in the same boat
BlockBeats News, November 11: The Acala team has formally submitted an on-chain governance proposal, Referendum #195, proposing an orderly sunset of the Acala network on Polkadot. Meanwhile, its sister chain on Kusama, Karura, has also launched the corresponding Referendum #137. If both referenda pass, the two chains will stop producing blocks on February 10, 2027, ending approximately seven years of operation. In an open letter to the community, the team explicitly stated that the reason is that DeFi liquidity depth in the Polkadot and Kusama ecosystems has remained insufficient and is further fragmented by the multi-parachain structure. Operating costs now exceed returns, making continued operations unsustainable. Under the proposal, if it passes, users must withdraw their external assets themselves before February 10, 2027, including DOT, KSM, and USDT, USDC, and other assets brought in via cross-chain bridges. Liquid staking products have earlier deadlines: users must begin unlocking validator-bonded LDOT by December 16, 2026; ordinary LDOT must be submitted for unbonding by January 12, 2027; and LKSM must be unbonded by February 2, 2027. The native tokens ACA and KAR cannot be withdrawn cross-chain and will eventually