$CC Canton Network Announces CIP Draft – Proposal to Burn CC for Network Traffic Fees
Canton Network has released a token economics proposal titled "Universal Burn and Synchronizer Pricing," put forward by Yiannis Varelas of 5North and Shaul Kfir of Digital Asset.
Key proposal details:
All production Synchronizers on the Canton mainnet including Dedicated Synchronizers must pay network traffic fees denominated in US dollars via an on-chain mechanism involving the burning (destruction) of Canton Coin (CC).
The deployment and operation of Dedicated Synchronizers will transition to a permissionless model. Activity on these synchronizers will also be included in the scope of validator and application rewards.
Current context:
Activity passing through the Global Synchronizer currently triggers CC burning.
Previously, Dedicated Synchronizers paid fees to Digital Asset under a commercial software license. This fee structure will be phased out as Digital Asset open-sources the core network.
Pricing and discount details:
The price for the Global Synchronizer remains fixed at $60 per MB.
The testnet environment remains free to use.
Dedicated Synchronizers may qualify for volume-based discounts.
Users can opt to stake $CC as collateral for long-term commitments to secure additional discounts.
Specific pricing curves and parameters will be outlined in future CIPs.
Expected roadmap:
Phase 1 (Q1 2027): Implementation of the Universal Burn mechanism. Phase 2 (Q3 2027): Valuation and discount curves come into effect.
Shifting to a model where CC tokens are burned to pay for throughput fees could exert downward pressure on CC supply over time, provided network transaction volumes increase. This is a positive signal for long-term tokenomics, even though actual implementation is still some time away.
Canton Network is moving to a token-burn model for fee payments a positive signal for CC supply. What do you think about this proposal?
News is for reference, not investment advice. Please read carefully before making a decision.
Canton Network has released a token economics proposal titled "Universal Burn and Synchronizer Pricing," put forward by Yiannis Varelas of 5North and Shaul Kfir of Digital Asset.
Key proposal details:
All production Synchronizers on the Canton mainnet including Dedicated Synchronizers must pay network traffic fees denominated in US dollars via an on-chain mechanism involving the burning (destruction) of Canton Coin (CC).
The deployment and operation of Dedicated Synchronizers will transition to a permissionless model. Activity on these synchronizers will also be included in the scope of validator and application rewards.
Current context:
Activity passing through the Global Synchronizer currently triggers CC burning.
Previously, Dedicated Synchronizers paid fees to Digital Asset under a commercial software license. This fee structure will be phased out as Digital Asset open-sources the core network.
Pricing and discount details:
The price for the Global Synchronizer remains fixed at $60 per MB.
The testnet environment remains free to use.
Dedicated Synchronizers may qualify for volume-based discounts.
Users can opt to stake $CC as collateral for long-term commitments to secure additional discounts.
Specific pricing curves and parameters will be outlined in future CIPs.
Expected roadmap:
Phase 1 (Q1 2027): Implementation of the Universal Burn mechanism. Phase 2 (Q3 2027): Valuation and discount curves come into effect.
Shifting to a model where CC tokens are burned to pay for throughput fees could exert downward pressure on CC supply over time, provided network transaction volumes increase. This is a positive signal for long-term tokenomics, even though actual implementation is still some time away.
Canton Network is moving to a token-burn model for fee payments a positive signal for CC supply. What do you think about this proposal?
News is for reference, not investment advice. Please read carefully before making a decision.