Acala and Karura Propose Permanent Closures for February 2027

Acala and Karura have put forward a proposal to permanently close the Polkadot-based DeFi network and its Kusama sister chain on February 10, 2027. The planned shutdown is not final: TronWeekly reports that it requires approval through two governance referendums, with both networks’ teams involved in presenting the closure proposal to their communities. The teams say the decision reflects broader difficulties in sustaining decentralized finance across Polkadot and Kusama. TronWeekly specifically cites fragmented liquidity and insufficient DeFi activity, while Crypto.news likewise attributes the proposal to a lack of sufficient liquidity across the two ecosystems. The latter outlet describes the proposal as bringing to a close seven years of development. Crypto.news reports that the Acala team communicated the proposal in a community letter, providing a mechanism for explaining the decision to network participants. The two accounts agree on the proposed date and the liquidity-related rationale, although TronWeekly offers the more detailed diagnosis of liquidity fragmentation and names the requirement for two governance votes. Neither account reports an outcome from those votes or an immediate cessation of network operations. The development provides a concrete example of the challenge facing DeFi platforms outside the largest crypto ecosystems: maintaining enough liquidity and user activity can become difficult even after years of development. For Acala and Karura participants, the next procedural milestone is the pair of governance referendums, which determine whether the February 2027 closure proceeds. The proposal also raises questions about the continued availability of network services and ecosystem assets ahead of that date, although the supplied coverage does not specify transition arrangements. Market conditions are subdued rather than volatile. Polkadot’s DOT token is priced at $0.855882, down 0.50% over 24 hours and 8.90% over seven days, with a $1.46 billion market capitalization. The total crypto market stands at $2.57 trillion and is broadly flat, while Bitcoin is up 0.87% over 24 hours. The Fear & Greed Index is at 32, placing sentiment in Fear as attention remains focused on the governance process and the proposed network closures.