DeFi

Acala

Karura

Polkadot

Kusama

<p><a href="https://bsc.news/news/acala-karura-shutdown-february-2027?utm_source=coinmarketcap&amp;utm_medium=feed" rel="noopener noreferrer nofollow">Read this article on bsc.news</a></p>
<p>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.</p>
<p><a href="https://x.com/AcalaNetwork" rel="noopener noreferrer nofollow">@AcalaNetwork</a> and <a href="https://x.com/KaruraNetwork" rel="noopener noreferrer nofollow">@KaruraNetwork</a> said the closure depends on the outcome of Acala Referendum #195 and Karura Referendum #137, according to <a href="https://cryptobriefing.com/acala-karura-permanent-shutdown-2027/" rel="noopener noreferrer nofollow">Crypto Briefing</a>. If both pass, the networks will stop producing new blocks after the shutdown date.</p>
<h2 id="why-the-networks-are-closing">Why the Networks Are Closing</h2>
<p>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.</p>
<p>The two projects have a notable place in Polkadot's history. <a href="https://ethnews.com/acala-and-karura-plan-shutdown-key-deadlines-for-token-holders/" rel="noopener noreferrer nofollow">ETHNews reports</a> that they secured the first parachain auction slots on Polkadot and Kusama, respectively. The networks offered decentralized trading, liquid staking and collateral-based services.</p>
<h2 id="what-users-need-to-do">What Users Need to Do</h2>
<p>Users are advised to withdraw external and bridged assets before the deadline. That includes <a href="https://x.com/search?q=%24DOT&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$DOT</a>, <a href="https://x.com/search?q=%24KSM&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$KSM</a>, <a href="https://x.com/search?q=%24USDT&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDT</a> and <a href="https://x.com/search?q=%24USDC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDC</a>. Native <a href="https://x.com/search?q=%24ACA&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$ACA</a> and <a href="https://x.com/search?q=%24KAR&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$KAR</a> tokens cannot be withdrawn to other networks and will remain locked on their respective chains once validators stop producing blocks, per <a href="https://cryptobriefing.com/acala-karura-permanent-shutdown-2027/" rel="noopener noreferrer nofollow">Crypto Briefing</a>.</p>
<p>Liquid staking positions carry earlier cutoffs. <a href="https://cryptobriefing.com/acala-karura-permanent-shutdown-2027/" rel="noopener noreferrer nofollow">Crypto Briefing</a> reports that LDOT must be unbonded by January 12, 2027, and LKSM by February 2, 2027. According to <a href="https://www.chaincatcher.com/en/article/2303034" rel="noopener noreferrer nofollow">ChainCatcher</a>, 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.</p>
<p>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.</p>
<h2 id="sources">Sources</h2>
<p><a href="https://cryptobriefing.com/acala-karura-permanent-shutdown-2027/" rel="noopener noreferrer nofollow">Crypto Briefing: Acala and Karura plan permanent shutdown on February 10, 2027</a></p>
<p><a href="https://ethnews.com/acala-and-karura-plan-shutdown-key-deadlines-for-token-holders/" rel="noopener noreferrer nofollow">ETHNews: Acala and Karura plan shutdown, key deadlines for token holders</a></p>
<p><a href="https://www.chaincatcher.com/en/article/2303034" rel="noopener noreferrer nofollow">ChainCatcher: Acala and Karura plan to stop block production on February 10, 2027</a></p>
<p><a href="https://bsc.news/latest-news?utm_source=coinmarketcap&amp;utm_medium=feed" rel="noopener noreferrer nofollow">See more news on bsc.news</a></p>

Acala and Karura Plan Shutdown on February 10, 2027, Citing Fragmented Polkadot and Kusama Liquidity

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