A novel scheme is proposed for realizing effective DC acceleration of charged particles in a circular ring. The key is to use an induction acceleration cell with multi-insulating gaps that allow forced short circuit using solid-state switching devices such as SiC-MOSFET or unforced short circuit using diodes. A baseline design of the induction acceleration cell is shown. A coasting beam is accelerated in the circular ring without bunching. As its possible application, a continuous-wave terahertz free-electron laser (FEL) is proposed with numerical parameters, where this effective DC acceleration compensates for energy loss of the electron beam occupying the entire isochronous storage ring due to synchrotron radiation and FEL interaction. As a result, FEL microbunching of a coasting beam can be created, resulting in a high average output power that has not been possible with existing linac-driven FELs or RF storage-ring FELs.