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CIP-0114: Digital Asset Treasury (DAT) SV Program

ApprovedTokenomicsby Mark Wendland w/ Community proposalCreated 19-03-2026Approved 16-04-2026
TL;DR

Abstract

This proposal establishes a time-bound Super Validator (SV) program to encourage the formation and growth of Digital Asset Treasury companies (DATs) that provide investor access to Canton Coin (CC) and commit to long-term CC ownership.

A DAT is an operating company whose primary purpose is to acquire, accumulate, and hold CC as a treasury asset while offering third parties structured access to CC exposure. DATs that accumulate and hold CC over multi-year periods provide durable ecosystem value and may earn SV rewards based on verifiable, consistent CC holdings.

Motivation

The current tokenomics framework primarily rewards active participation in validation and application activity but does not explicitly incentivize long-term capital formation or treasury-based accumulation of CC.

This creates a gap in the ecosystem where:

  • Long-term aligned capital is under-incentivized

  • Institutional participation via structured vehicles is limited

  • Market stability mechanisms tied to sustained holding are weak

The DAT program addresses this by:

  • Encouraging purpose-built treasury entities

  • Aligning incentives with long-term CC ownership

  • Expanding access to CC through regulated financial structures

  • Supporting deeper liquidity and ecosystem credibility

Rationale

The design prioritizes verifiability, durability, and alignment:

  • Quarterly evaluation ensures ongoing commitment rather than one-time qualification

  • Escrow and staged release aligns incentives over time

  • High AUM threshold ($100M) filters for serious institutional participants

  • Weight tied to holdings directly links influence to economic commitment

Alternative approaches considered:

  • Immediate full weight allocation → rejected due to lack of long-term alignment

  • No holding requirements → rejected due to risk of short-term gaming

  • Lower AUM thresholds → rejected to maintain program quality and signaling value

Concerns addressed:

  • Prevents passive holders from qualifying (explicit exclusions)

  • Avoids reward farming through earned CC

  • Ensures program cap limits systemic impact

Specification

  • Maximum allocation: SV Weight 20

  • Enrollment window: 12 months from CIP approval

  • Participant Review and Weight Release cadence: Quarterly per qualifying DAT from the day of acceptance into the program.

  • No pre-escrow: SV Weight is escrowed only upon a weight allocation being confirmed by the Canton Foundation (CF) or its delegates and the necessary on-chain votes completing successfully.

  • Program Administration: The CF delegates that will administer this program and make relevant decisions outlined in this CIP will be the CF Tokenomics Committee aided by the Accountability Working Group within the CF Tokenomics committee.

Definition: Digital Asset Treasury (DAT)

For the purposes of this proposal, a Digital Asset Treasury (DAT) is defined as:

  • A publicly traded company whose primary corporate purpose is the acquisition, accumulation, and long-term holding of CC

  • Structured to provide third-party investor access (e.g., equity, trust interests, notes, or similar instruments)

Explicit Exclusions

The following do not qualify as DATs:

  • Public companies that incidentally hold CC on their balance sheet

  • ETFs, index funds, or passive investment vehicles

  • Custodians, exchanges, or intermediaries holding CC on behalf of clients

  • Trading firms or yield-driven vehicles

This program is intended to apply to purpose-built CC treasury companies, not passive holders.

Eligibility Requirements

To participate, a DAT must meet all of the following:

  1. Initial Minimum AUM

  • Greater than $100 million in total assets under management when the DAT enters into the program for the first time. This AUM calculation will be defined as:

    AUM = Current DAT CC holdings * Purchase Price for Each CC

    Supporting transaction details including but not limited to the CC quantity purchased, the price each CC was purchased at, and the date/time of each purchase must be shared with the CF during the application process to join the program.

    Define the DAT’s “Floor CC Quantum” and “CC Quantum” to be equal to Current DAT holdings at the time of their approval to participate in this program.

  1. Strategic Market Participation
  • Operates in a strategic geographic market (e.g., United States, Japan, Korea, or other jurisdictions approved by CF or its delegates)
  1. Primary Purpose Test
  • The entity’s primary purpose must be long-term CC treasury accumulation
  1. Attestation Capability
  • Ability to attest to CC holdings in a manner acceptable to the CF or its delegates.
  1. Foundation Approval

  • CF or its delegates review and approval of DAT business model

  • The DAT can apply for CF or its delegates approval upon reaching $100M AUM as defined in “Initial Minimum AUM”

SV Reward Mechanics

Weight Accrual Formula

Eligible DATs may earn SV Weight according to the following ratio:

1 SV Weight per $50 million equivalent of CC acquired at qualification

This SV Weight may be earned at the time of a DAT’s entrance into the program or on each future quarterly review of the DATs participation in the program. For the later, this is possible if, during a quarterly review, it is determined the DAT has accrued sufficient new CC above CC Quantum to meet the next weight awarding milestone.

Any added CC above CC Quantum which is not sufficient to merit a weight increase for a DAT’s SV during a quarterly review can be rolled over into the next quarterly review (“Stub CC”), in addition to any other newly added CC, for calculating a potential increase in weight at that time. Such a weight increasing claim by the SV must be supplemented with supporting transaction details including but not limited to the CC quantity purchased, the price each CC was purchased at, and the date/time of each purchase.

Total SV Weight earned is subject to the program cap of SV Weight 20.

For the avoidance of doubt, given the Initial Minimum AUM requirement of $100M this means that a new DAT entering this program will begin with at least 2 SV weight allocated except in the scenario in which such new weight would exceed the program’s weight cap. In that case the SV will be limited to weight equal to the remaining available weight up to the program’s weight cap.

CC Position Recording

Upon acceptance into this program, the DAT records the following with the CF as part of the application for the program:

The exact number of CC units acquired and held at the time of approval into program (“CC Unit Number”); and

The purchase price of each CC unit in scope for the program with supporting documentation.

Set the DAT’s “Floor CC Quantum” and “CC Quantum” to be equal to the CC Unit Number established above

During future quarterly evaluations, if the DAT has accrued and holds New CC such that New CC notional value as defined in “Weight Accrual Formula” is >= $50 million, the SV is eligible to earn 1 incremental SV weight per each incremental $50 million notional of New CC. In the event this happens, add the portion of New CC that is sufficient to meet the newly earned weight threshold to CC Quantum to create the DAT’s updated CC Quantum. Any of the DAT’s New CC not included in the updated CC Quantum shall be considered Stub CC and may be used for future weight unlocks. For the purposes of this section:

New CC = DAT’s CC holdings at Measurement Round – CC Quantum.

Measurement Round = The Mainnet round number during which the quarterly evaluation is conducted.

For the avoidance of doubt, CC earned by the DAT via participation in SV, Validator, or Application rewards may not be included for the purposes of this program.

Escrow & Release Structure

  1. Qualification & Escrow
  • When the DAT has met the criteria to earn weight, the corresponding SV Weight is added to a DAT ghost SV
  1. Quarterly Evaluation

  • Every quarter, the DAT must hold ≥ the recorded CC quantum

  • If the requirement is met, the quarterly portion of SV rewards is released. If not, trigger the actions in “Failure to Maintain Holdings”.

  1. Reward & Weight Release

  • 50% of the relevant allocated SV weight is released after the first quarterly review of the DAT following that weight being allocated to the DAT provided they continue to hold CC > CC Quantum.

  • Each successive quarter over the next four quarters releases ¼ of the remaining 50% of the earned SV weight (1 year) provided the DAT’s CC holdings at the time of the relevant quarterly review >= CC Quantum

  1. Escrowed CC Release
  • Each time weight is released to the SV, any accrued and escrowed CC associated with that weight is released to the DAT.
  1. Failure to Maintain Holdings

  • If at any quarterly checkpoint the DAT holds less than the current CC Quantum (“High Water Mark”):

  • The DAT’s SV weight is reduced such that it is now equivalent to weight associated with the highest previously achieved CC Quantum that is less than the DAT’s Current CC held.

  • All pending weight and reward releases are paused until the DAT’s Currently Held CC is again >= High Water Mark. Any rewards associated with this reduced weight (including any that are “paused”) continue to accrue in escrow for the next quarter.

  • During the following quarterly checkpoint:

  1. If the DAT has accrued and holds CC >= High Water Mark, any paused weight unlocks resume from where their schedule had paused and any SV rewards that would have otherwise been released to the DAT are now released. For the avoidance of doubt, in this case the DAT’s full timeline will be extended to allow for each planned quarterly review to take place despite the pause.

  2. If the DAT has failed to accrue and hold CC >= High Water Mark during the first quarterly check point they are afforded a second quarterly cycle and check point to re-meet the High-Water Mark. In the event they fail to do so during the second quarterly checkpoint any escrowed rewards associated with the reduced weight are burnt and the SV no longer has a claim on them. Similarly, the reduced weight is returned to the program’s weight pool to potentially be earned by an SV in the future.

  • In the event that a DAT has spent two quarterly cycles with CC holdings < Floor CC Quantum, the DAT is removed from this program, its SV weight is reduced to 0, any escrowed reward coupons allocated to the DAT are burned, and it forfeits its SV.

Example

  • NewDAT launches and acquires X CC

  • NewDAT records its CC quantum with the Foundation

  • Based on acquisition size, 1.0 SV Weight is allocated to ghost validator escrow

Quarterly Releases (1-Year Period)

  • Total release schedule: 4 quarters

  • .5 SV Weight is released in the first quarter of meeting the weight

  • Quarterly release amount: 0.125 SV Weight per quarter of the remaining weight

At the first quarterly checkpoint:

  • If NewDAT holds ≥ X CC:

    • 0.5 SV Weight is released

At each quarterly checkpoint:

  • If NewDAT holds ≥ X CC:

    • 0.125 SV Weight is released

  • If NewDAT holds < X CC:

    • Weight is lowered to new threshold

    • No rewards are released but held in escrow for the lower tier

    • Upon achieving the high-water mark again, rewards in escrow will be released per the quarterly schedule

This process continues for up to 1 year, with a maximum of 1.0 SV Weight released if all quarterly conditions are met.

Program Constraints

  • SV Weight cap: 20 total

  • Enrollment window: 12 months

  • Non-transferable: Weight earned under this program may not be reassigned

  • No pre-committed escrow: No SV Weight may be escrowed without a qualifying DAT

Copyright

This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal

Changelog

  • 2026-04-16 - Approved
  • 2026-03-19 - Draft