What Is Acala Token?

About Acala Token (ACA)

ACA is a native utility token of the Acala network, which is a decentralized finance platform. It is a layer-1 smart contract platform built on the Polkadot blockchain. It is supposed to provide more options for smart contract usage while being cross-chain interoperable. One of the important features of Acala is its Ethereum-compatibility. It aims to become a provider of stability and liquidity in the Crypto World.

The ACA coin has several use cases, including paying transaction fees, stability fees, and penalty fees.

ACA token holders have a number of opportunities. They receive a right to propose network upgrades and risk adjustments. All proposals are being considered and implemented if they meet the needs of the network. They can also vote for governance decisions and council members.

It is stated in the official white paper that holders of the ACA token who choose to actively participate in the governance do not receive any returns from the network. On the other hand, nodes are being rewarded in ACA for their service.

To generate profit while using the Acala network it is also possible to stake the ACA tokens.

Where did Acala Token (ACA) come from?

The Acala network was founded in 2019 by Ruitao Su, Bette Chen, Fuyao Jiang, and Bryan Chen through the Acala foundation, which is supposed to overlook the network until it may reach its full decentralization. All of the founders have strong backgrounds in software engineering, trading, and creating online platforms. Ruitao Su is co-founder and CEO of Laminar and Less Code Limited. Bette Chen is another co-founder of Laminar, he specializes in software engineering. Fuyao Jiang developed the Polkawallet.

What are the advantages of Acala Token (ACA)?

1. Passive income
   
   ACA should be staked to provide an earning opportunity. Also nodes receive rewards.
2. Participation in the governance
   
   The ACA coin holders get more opportunities to vote and offer updates. In the future the network will be governed by referendum. 
3. Ethereum compatibility
   
   This feature gives the network and the token more opportunities in the DeFi sphere.

What are the disadvantages of Acala Token (ACA)?

It is hard to talk about the ACA token disadvantages, since it is a native utility token. However, some users believe that the fact that the token can be used only within one platform is a serious downside.

How to buy Acala Token (ACA)?

If you are interested in trying out the Acala network’s possibilities, you would need some ACA tokens. We are here to help you with this. Please, follow the instructions below to get ACA on SimpleSwap:

1. Let's say you would like to exchange BTC to ACA. Choose the currency you want to exchange (BTC) in the first drop-down list. Enter the amount you would like to swap.
2. Select Acala Token in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
3. Click the Exchange button.
4. Enter the Recipient's Address. ACA will be sent to this address. Be careful and make sure you use the correct address.
5. Create the exchange.
6. You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

Thank you for choosing SimpleSwap! You are also welcome to check the Acala Token price prediction.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.