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CIP-0125: Add Paxos as a Super Validator (Weight 8.0)

ApprovedGovernanceby Eric SaranieckiCreated 14-09-2026Approved 22-09-2026
TL;DR

Abstract

This proposal adds Paxos as a Super Validator (SV) on the Canton Network with a maximum potential weight of 8.0, tied to the integration and operation of stablecoin treasury management workflows on Canton.

Paxos is the issuer of major regulated stablecoins and operates regulated infrastructure for custody and settlement. This proposal aligns SV rewards with Paxos bringing treasury management, issuance, and settlement flows on-chain, enabling 24×7 programmable cash infrastructure on Canton.

About Paxos

Paxos is a regulated financial institution specializing in blockchain-based infrastructure, including stablecoin issuance, custody, and settlement services. Paxos issues regulated stablecoins and plays a key role in bridging traditional financial systems with digital asset infrastructure.

Paxos is uniquely positioned to bring on-chain cash, treasury management, and settlement workflows to Canton at scale.

Commitment Milestones

MilestoneDescriptionDeadline from CIP ApprovalSV Weight Earned
Stablecoin Native IntegrationIntegrate Paxos' stablecoin issuance platform natively on Canton, enabling issuance, redemption, and operation directly on the network, and mint an aggregate of $20 million of major Paxos-issued stablecoins.+6 months+3
Reserve Management MVPDeliver a production MVP of stablecoin reserve management on Canton. This may include holding reserves on Canton in the form of tokenized treasuries, reverse repo, and/or digital demand deposits.+9 months+1
Automated Mint/RedeemEnable automated mint and redeem functionality for stablecoins managed by Paxos on Canton, allowing approved participants to mint and redeem 24×7 using on-chain digital demand deposits, tokenized U.S. treasuries, or reverse repo settling on-chain.+12 months+1
Adoption Bonus (Mint/Redeem Volume)Earn additional SV weight based on usage of the on-chain mint/redeem mechanism: +0.5 SV weight per $200 million of stablecoins minted on Canton, including stablecoins that may be transferred to other chains.<br><br>Earn additional SV weight based on the Reserve Management mechanism: +0.5 SV weight per $200 million average of stablecoin treasury reserves held on Canton over a rolling 30-day period.<br><br>The Adoption Bonus is capped at +3 SV weight in total across the two categories.Within 24 monthsUp to +3

Adoption Measurement

  • Only stablecoins minted or redeemed through the on-chain Canton treasury mechanism qualify toward the Adoption Bonus.
  • Volume is measured on a gross basis and must be verifiable on-chain or through agreed reporting standards.
  • The maximum Adoption Bonus is capped at +3 SV weight.
  1. Perpetual Sustainment Requirement (High-Water Mark)

Weight earned through the Adoption Bonus milestone (+3.0 maximum) is subject to a perpetual sustainment requirement to align with the ongoing nature of SV rewards.

  • Reference Rate Calculation: For each tranche, the "Reference Rate" is the rate of activity per two-quarter period required for approval:

    Reference Rate Calculation

  • Drop in Activity Definition: A decline of more than 50% in the rolling two-quarter average of eligible activity (Burn, Volume, or TVL) relative to the Reference Rate.

  • Remediation: If the decline persists for two consecutive quarters, the Accountability Committee reserves the right to apply a proportional weight reduction.

Communications Requirements

To ensure transparency and ecosystem coordination:

  • Publish an announcement at the time of CIP approval outlining Paxos' integration plans.
  • Publish a communication upon completion of each of the first three milestones.
  • Publish an additional announcement upon reaching $1B in cumulative mint/redeem volume on Canton.

SV Reward Mechanics

An extraBeneficiary PartyID tied to an escrowed Super Validator will be configured by the Global Synchronizer Foundation (GSF) with the full maximum weight defined in this CIP.

  • Paxos will coordinate the escrow configuration with the GSF and the SV node operator.
  • Paxos is responsible for all costs associated with operating the escrow SV.
  • The escrow SV will not mint rewards on a block-by-block basis; all rewards will accrue to the Unclaimed Rewards Pool.

Upon milestone completion:

  1. Paxos submits proof of completion and the reward calculation to the Tokenomics Working Group.
  2. Upon approval, the GSF updates the extraBeneficiary PartyID.
  3. ⅔ of active Super Validators assign the approved reward weight.

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

Changelog

  • 2026-09-14: Initial draft published.
  • 2026-09-22: Approval