[Withdrawn] CIP 0108 - Merkle Science SV Weight of 1.0 - Feb 2026
- --Dear GSF Community,I am sharing the latest draft incorporating Eric's (DA) and Alex's (DRW) feedback on the previous version.We have removed the rewards optimisation element. The scope is now fully focused on deploying our predictive analytics on Canton to support institutional onboarding. Specifically, the proposal targets onboarding one stablecoin issuer and three enterprise customers within the first six months, measured by generated transaction volume.As requested, we incorporated two aspects: 1) an SV exit clause for cases where our solution does not meet the GSF requirements, and 2) a clause ensuring the fee burn is sustained to warrant the continuity of the SV rewards. This includes a mechanism to reduce the SV weight if the burned fees fall below 80% compared to the previous year (265 working days). Both clauses can be applied after the initial milestones are met.The CIP aligns with recently approved CIPs such as Blockdaemon that prioritize sustainable, institutional growth of the network for the long term.We are looking forward to the community's feedback.Best regards,Justus
____________________________________________________________________Add Merkle Science’s Predictive Analytics as a Weight [4] SV
CIP: TBD
Title: Add Merkle Science’s Predictive Analytics as a Weight [4] SV
Author: Dr. Justus Delp
Discussions-To:
Comments-Summary:
Comments-URI:
Status: DRAFT
Type: Governance
Created: 2020-12-16
Approved:
License: CC0-1.0
License-Code:
Post-History: https://lists.sync.global/g/cip-discuss/topic/cip_tbd_add_merkle/117664005
Requires:
Replaces: CIP TBD - Merkle Science SV Weight of 2.0 - 2026
Superseded-By: CIP TBD - Merkle Science SV Weight of 2.0 - Feb 2026
Abstract
This CIP proposes Merkle Science to join the Canton Foundation by adding Merkle Science as a Weight [ ] SV:
1) Natively integrate the Canon Network to protect economic activities from illicit and sanctioned activities.
2) Actively accelerate the institutional adoption via 100+ global customers.
Ecosystem Protection: Merkle Science will deploy its industry-leading predictive analytics to enable real-time detection of sanctioned and illicit activity. This serves as a foundational layer of network security required to meet increasing regulatory obligations for financial institutions and stablecoin issuers. Such infrastructure is a prerequisite for institutional adoption of Canton.
Institutional Adoption: The initial onboarding of a stablecoin issuer is expected to generate 15M+ transactions annually beginning April 2026. Within 90 days of approval, Merkle Science will make Canton available to 100+ customers, including global exchanges, custodians, stablecoin issuers, and wallets. At least three enterprise customers generating a minimum of 30M in annual transaction volume will go live on Canton within six months, supported by letters of intent.
Motivation
Ecosystem Protection: Regulators (FATF, OCC, SEC, CFTC) and financial institutions expect embedded security infrastructure capable of handling complex transaction flows across wallets, DEXs, bridges, and smart contracts—particularly against sophisticated actors (e.g., state-sponsored groups such as DPRK). Merkle Science delivers proven predictive analytics designed to supersede traditional crypto compliance models, which are increasingly insufficient for today’s threat landscape.
Institutional Adoption: Merkle Science acts as a critical bridge between blockchain infrastructure and financial institutions, exchanges, wallets, and stablecoin issuers. Native integration will enable 100+ existing Merkle Science customers to deploy liquidity and economic activity on Canton.
Merkle Science will actively accelerate adoption by:
Onboarding one stablecoin issuer (Haycen) by April 2026.
Onboarding at least three enterprise customers generating over 30M in annual transaction volume within six months.
This delivers measurable institutional adoption and increases the utility and burn of Canton Coin.
Milestone Specification
Deliverable
Acceptance Criteria
Deadline
Weight Earned
Activating Predictive Risk Analytics for Institutional Adoption
Predictive AI-Risk Detection: Deliver proprietary heuristics and behavioral analytics on Canton to identify sanctioned and illicit actors based on transaction timing and volume patterns.
Provide two complimentary enterprise licenses to the Canton Foundation.
Provide freemium licenses to featured applications (up to 1,000 screenings per year per application).
The reward is linked to the guaranteed uptime of 99% and approval of the GSF, with the option to revocate the SV weight if the network’s evolving security needs are not met.
3 months from approval
+1.0
Canton Coin Burn via Institutional Activity
Earn 0.5 weight for every $10m in network fees generated. Transaction fees will be measured based on-chain activity.
Eligible transactions will be measured by entity including:
Stablecoin payments
Minting and redemptions
Swaps
Settlements
The reward weight is linked to at least 80% sustained network fees measured over the preceding 265 days after the initial 24 months. If the volume is below 80% the weighting can be reduced or fully revoked, as outlined under Weight Adjustment.
Weight shall be maintained at 3.0 when transaction fees are at least 80% of the prior 265-day network average. For each additional 10% decline below 80%, weight shall be reduced by 0.4. This will reduce the weight to zero for less than 10% of the prior 265-day network average.
24 months from the approval
Max weight of +3
+0.5 for every $10m in network fees generated via Merkle Science’s Infrastructure
Weight Adjustment
The table below outlines the weight reduction for the second milestone: Canton Coin Burn via Institutional Activity. For every 10% reduction of transaction fees based on the 265 days average the weight will be reduced by 0.4 (rounded from 0.375), resulting in a weight of 0 for less than 10% transaction volume. In simple words, the weight will only stay at max 3. if the transaction volume does not fall below 80% of the previous 265 days average. For every 10% reduction in transaction fees, the weight will reduce by 0.4.
Weight Reduction for every 10% below 80%
Weight
> 80%
3.0
70% – <80%
2.6
60% – <70%
2.2
50% – <60%
1.8
40% – <50%
1.4
30% – <40%
1.0
20% – <30%
0.6
10% – <20%
0.2
<10%
0
About Merkle Science
Merkle Science is an AI-powered blockchain analytics platform providing actionable real-time intelligence. Founded in 2018, the company supports 27 blockchains and is trusted by 100+ customers, including Crypto.com, Laser Digital, Consensys, and Hudson River Trading. Merkle Science provides critical security infrastructure to drive institutional adoption by preventing high-profile threat actors from accessing on-chain financial services. The company has raised $27M in funding from Susquehanna, Uncorrelated Ventures, Digital Currency Group, and Kenetic
Rationale
To foster trust, transparency, and collaboration within the Global Synchronizer ecosystem, Merkle Science will apply its proprietary technologies to protect against sanctioned and illicit activities in pursuit of safeguarding institutional adoption.
Whilst access to our technology increases the transparency, this proposal also enhances collaboration by extending API access to the critical infrastructure and featured applications to benefit from the enterprise services.The onboarding and complimentary access is aligned with the suggested weight of 2.0 based on the current minting schedule.
Finally, the previously collected feedback from SVs underscore the importance of this protection to strengthen the trust within the canton community.
SV Rewards Mechanism
Escrow setup & operation: An escrowed Super Validator (SV) PartyID with maximum weight is established by the Foundation or an approved operator; the applicant coordinates setup with GSF and SV operators and bears all operational costs.
Milestones & reward release: The applicant submits proof of completed milestones and a reward calculation to the Tokenomics Working Group. Upon approval, the escrowed weight is activated to the Applicant’s SV, and a portion of Unclaimed Rewards is minted based on the approved calculation, following configuration updates by ⅔ of SV operators.
Failure handling: If milestones are missed, the applicant is notified, escrowed SV weight is removed via SV vote, and the Tokenomics Working Group recommends how remaining Unclaimed Rewards should be handled.
Changelog
Draft 2025-12-16
Revision 2026-02-16
Publication
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
Sign Up For Our Crypto Investigator Certification | Blog and Resources Dear Justus,
The revised draft is much stronger IMO.
Tying weight to measurable fee generation and adding sustainability mechanics is the right foundation
and we could consider endorsing this if we can clarify the following:1. Objective Attribution
Provide a precise, auditable methodology for attributing transaction volume to Merkle’s infrastructure. This must be mechanical and independently verifiable.2. Accountability Validation
Define how the Accountability Committee will validate milestone delivery in practice, including uptime, analytics deployment, license issuance, and on-chain volume. Enforcement should be rule-based, not discretionary.3. Sustainability Timing
The 24-month review window is long. Consider an earlier or progressive retention review.4. Weight Proportionality
I'm ok with any weight as long as it's proportionate to other similar CIPs on the same spirit.
Best,
Y.- toggle quoted message Show quoted text--Hi Yiannis,Thank you for your feedback.After discussing them internally and with other SVs, I am sharing a summary of the key changes and an updated version of the draft addressing the raised points below:Summary of Changes1. Objective Attribution
1.1. We are happy to provide an auditable methodology to explain and verify how the transaction volume can be attributed to Merkle Science’s Infrastructure.
1.2.The mechanical verification will be based on:
Proof of Transaction: Public verifiable onchain transaction data
Proof of Infrastructure Use: Number of screened transactions, as documented on Product UI
Customer Status: Verified Customer evidenced by Letter of Intents/MSAs
2. Accountability Validation
2.1. Validation of the milestone can be done as follows:
Analytics deployment: reviewer verifiable demo post deployment
Licenses issuance recorded via e-mail invites to GSF/community members
3. Sustainability Timing
3.1. We can shorten the initial milestone from 24 to 18 months to maximize the number of customers onboarded to Canton before any weight is awarded. We believe that this time period is appropriate, as subsequently the weight cannot be increased but only decreased. The latest approved proposal, QCP, used a similar approach supporting the argument. Additionally this accounts for a 3 months onboarding period before customers can deploy assets via our infrastructure.
4. Weight Proportionality
4.1. We believe that the requested weight of 4.0 aligns with CIP-0094 (weight of 5.0) CIP-0085 (weight 6.5) for deploying infrastructure and accelerating institutional adoption. The scopes and weights are approx. aligned with our CIP for the infrastructure and institutional adoption. Both proposals received a weight of 1 for the infrastructure deployments. CIP-0094 received 0.5 for 10 million in transaction volume which is mirrored on our proposal.
That said, we would like to clarify whether we should use the same standard — a $2M Canton Coin burn for +0.5 — that was used for QCP's proposal (CIP-0106) versus the initially proposed +0.5 for every $10M in Canton Coin burned. Given the new high-water mark standard, It seems sensible. The underlying reason is that the new standard requires sustaining the burned Canton Coin vs a one-time spike—but we are happy to proceed with either.
5. High Water Mark
5.1. We incorporated the latest edits regarding the "High Water Mark" from the QCP proposal. In addition to those edits, we included a clear percentage breakdown of weight reduction. We changed the threshold to 50% versus the initially suggested 80% aligned to the most recent approval for CIP-0106. Let me know if those tiered adjustments help to sharpen the implementation of potential weight adjustments.
I am looking forward to the community's feedback.
Best regards,Justus____________________________________________________________________________Add Merkle Science’s Predictive Analytics as a Weight [4] SV
CIP: TBD
Title: Add Merkle Science’s Predictive Analytics as a Weight [4] SV
Author: Dr. Justus Delp
Discussions-To:
Comments-Summary:
Comments-URI:
Status: DRAFT
Type: Governance
Created: 2020-12-16
Approved:
License: CC0-1.0
License-Code:
Post-History: https://lists.sync.global/g/cip-discuss/topic/cip_tbd_add_merkle/117664005
Requires:
Replaces: CIP TBD - Merkle Science SV Weight of 2.0 - 2026
Superseded-By: CIP TBD - Merkle Science SV Weight of 2.0 - Feb 2026
Abstract
This CIP proposes Merkle Science to join the Canton Foundation by adding Merkle Science as a Weight [ ] SV:
1) Natively integrate the Canton Network to protect economic activities from illicit and sanctioned activities.
2) Actively accelerate the institutional adoption via 100+ global customers.
Ecosystem Protection: Merkle Science will deploy its industry-leading predictive analytics to enable real-time detection of sanctioned and illicit activity. This serves as a foundational layer of network security required to meet increasing regulatory obligations for financial institutions and stablecoin issuers. Such infrastructure is a prerequisite for institutional adoption of Canton.
Institutional Adoption: The initial onboarding of a stablecoin issuer is expected to generate 15M+ transactions annually beginning April 2026. Within 90 days of approval, Merkle Science will make Canton available to 100+ customers, including global exchanges, custodians, stablecoin issuers, and wallets. At least three enterprise customers generating a minimum of 30M in annual transaction volume will go live on Canton within six months, supported by letters of intent.
Motivation
Ecosystem Protection: Regulators (FATF, OCC, SEC, CFTC) and financial institutions expect embedded security infrastructure capable of handling complex transaction flows across wallets, DEXs, bridges, and smart contracts—particularly against sophisticated actors (e.g., state-sponsored groups such as DPRK). Merkle Science delivers proven predictive analytics designed to supersede traditional crypto compliance models, which are increasingly insufficient for today’s threat landscape.
Institutional Adoption: Merkle Science acts as a critical bridge between blockchain infrastructure and financial institutions, exchanges, wallets, and stablecoin issuers. Native integration will enable 100+ existing Merkle Science customers to deploy liquidity and economic activity on Canton.
Merkle Science will actively accelerate adoption by:
Onboarding one stablecoin issuer (Haycen) by April 2026.
Onboarding at least three enterprise customers generating over 30M in annual transaction volume within six months.
This delivers measurable institutional adoption and increases the utility and burn of Canton Coin.
Milestone Specification
Deliverable
Acceptance Criteria
Deadline
Weight Earned
Activating Predictive Risk Analytics for Institutional Adoption
Predictive AI-Risk Detection: Deliver proprietary heuristics and behavioral analytics on Canton to identify sanctioned and illicit actors based on transaction timing and volume patterns.
Provide two complimentary enterprise licenses to the Canton Foundation.
Provide freemium licenses to featured applications (up to 1,000 screenings per year per application).
The reward is linked to the guaranteed uptime of 99% and approval of the GSF, with the option to revocate the SV weight if the network’s evolving security needs are not met.
If service lapses or the Foundation does not find the product to meet its needs and the needs of the community, it can recommend revocation of this SV Weight at that time
3 months from approval
+1.0
Canton Coin Burn via Institutional Activity
Earn 0.5 weight for every $10M in network fees generated, attributable to Merkle Science Infrastructure.
Eligible activities include:
Payments
Minting and redemptions
Swaps
Settlements
The reward weight is linked to at least 50% sustained network fees measured over the preceding 265 days after the initial 18 months. If the volume is below 50% the weighting can be reduced or fully revoked, as outlined under Weight Adjustment.
If burn drops below 80% of its high water mark (over preceding 265 days) after the 24 month period, SV Weight may be reduced proportionally or revoked depending on Foundation recommendation
18 months from the approval
Max weight of +3
+0.5 for every USD $10M equivalent of canton coin burned via Merkle Science’s Infrastructure
Approval Criteria: Eligible Burn & Sustainment Criteria
+0.5 for an eligible burn of USD $10,000,000 equivalent in Canton Coin via Merkle Science infrastructure, up to a maximum of 3.0.
Eligible burn criteria will be measured by entity including:
Payments
Minting and redemptions
Swaps
Settlements
Implementation of Weight Adjustment - High Water Mark
The table below outlines a proportionate weight reduction for the second milestone in case the sustained Canton Coin Burn drops below 50% relative to the burn rate at the time of the award. For every 10% reduction of Canton Coin burned in USD the weight will be reduced by 0.6, resulting in a weight of 0 for less than 10% transaction fees in USD generated. In simple words, the weight will only stay at max 3. if the transaction volume does not fall below 50% measured based on the previous 265 days average. For every 10% reduction in transaction fees in USD, the weight will reduce by 0.6.
Weight Reduction for every 10% below 50%
Weight
> 50%
3.0
40% – <50%
2.4
30% – <40%
1.8
20% – <30%
1.2
10% – <20%
0.6
<10%
0
Protection of Infrastructure Contributions
The +1.0 weight tied to infrastructure deployment and complimentary licenses are exempt from the weight adjustment clause outlined below. This recognizes the permanent value of the solution and licenses that are continuously delivered to the network for the duration of the SV weight.
Measurement & Reporting
The following measurement and reporting standards will be adopted to validate the milestone delivery.
Milestone 1 Approval Criteria Accountability Validation:
Analytics deployment: reviewer verifiable demo post deployment
Licenses issuance: recorded via e-mail invites to GSF/community members
Milestone 2 Approval Criteria Infrastructure Verification:
On-Chain Verifiability: All burns must be recorded on-chain and publicly verifiable.
USD Conversion: Full burn amounts measured in USD based on a price source approved by the Tokenomics Working Group.
Price calculation methodology for converting CC in USD
Proof of Infrastructure Use: Number of screened transactions on an entity level, as documented on Product UI
Customer: Verified customer status as evidenced by Letter of Intents/MSAs
Anti-Gaming & Double-Counting Protections
The following anti-gaming and double counting protections will be adopted:
Burned Canton Coin may not be counted more than once across the qualifying period
Only Merkle Science customers’ burn is accounted for.
Self-cycling, wash activity, or economically circular transactions intended primarily to generate burn are explicitly excluded.
The Tokenomics Working Group retains discretion to exclude activity deemed non-economic or manipulative
About Merkle Science
Merkle Science is an AI-powered blockchain analytics platform providing actionable real-time intelligence. Founded in 2018, the company supports 27 blockchains and is trusted by 100+ customers, including Crypto.com, Laser Digital, Consensys, and Hudson River Trading. Merkle Science provides critical security infrastructure to drive institutional adoption by preventing high-profile threat actors from accessing on-chain financial services. The company has raised $27M in funding from Susquehanna, Uncorrelated Ventures, Digital Currency Group, and Kenetic
Rationale
To foster trust, transparency, and collaboration within the Global Synchronizer ecosystem, Merkle Science will apply its proprietary technologies to protect against sanctioned and illicit activities in pursuit of safeguarding institutional adoption.
Whilst access to our technology increases the transparency, this proposal also enhances collaboration by extending API access to the critical infrastructure and featured applications to benefit from the enterprise services.The onboarding and complimentary access is aligned with the suggested weight of 2.0 based on the current minting schedule.
Finally, the previously collected feedback from SVs underscore the importance of this protection to strengthen the trust within the canton community.
SV Rewards Mechanism
Escrow setup & operation: An escrowed Super Validator (SV) PartyID with maximum weight is established by the Foundation or an approved operator; the applicant coordinates setup with GSF and SV operators and bears all operational costs.
Milestones & reward release: The applicant submits proof of completed milestones and a reward calculation to the Tokenomics Working Group. Upon approval, the escrowed weight is activated to the Applicant’s SV, and a portion of Unclaimed Rewards is minted based on the approved calculation, following configuration updates by ⅔ of SV operators.
Failure handling: If milestones are missed, the applicant is notified, escrowed SV weight is removed via SV vote, and the Tokenomics Working Group recommends how remaining Unclaimed Rewards should be handled.
Changelog
Draft 2025-12-16
Revision 2026-02-16
Publication
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
Sign Up For Our Crypto Investigator Certification | Blog and Resources On Fri, Feb 27, 2026 at 12:51 AM Yiannis Varelas via lists.sync.global <y=fivenorth.io@...> wrote:Dear Justus,
The revised draft is much stronger IMO.
Tying weight to measurable fee generation and adding sustainability mechanics is the right foundation
and we could consider endorsing this if we can clarify the following:1. Objective Attribution
Provide a precise, auditable methodology for attributing transaction volume to Merkle’s infrastructure. This must be mechanical and independently verifiable.2. Accountability Validation
Define how the Accountability Committee will validate milestone delivery in practice, including uptime, analytics deployment, license issuance, and on-chain volume. Enforcement should be rule-based, not discretionary.3. Sustainability Timing
The 24-month review window is long. Consider an earlier or progressive retention review.4. Weight Proportionality
I'm ok with any weight as long as it's proportionate to other similar CIPs on the same spirit.
Best,
Y.--Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
Sign Up For Our Crypto Investigator Certification | Blog and Resources - toggle quoted message Show quoted textI believe this aligns with the recent proposals we have seen. MPCH would be happy to sponsor
Get Outlook for iOS
From: cip-discuss@... <cip-discuss@...> on behalf of Justus Delp via lists.sync.global <justus.delp=merklescience.com@...>
Sent: Tuesday, March 3, 2026 2:52:53 PM
To: cip-discuss@... <cip-discuss@...>
Subject: Re: [cip-discuss] CIP TBD - Merkle Science SV Weight of 4.0 - Feb 2026You don't often get email from justus.delp=merklescience.com@.... Learn why this is important--Hi Yiannis,
Thank you for your feedback.
After discussing them internally and with other SVs, I am sharing a summary of the key changes and an updated version of the draft addressing the raised points below:
Summary of Changes
1. Objective Attribution1.1. We are happy to provide an auditable methodology to explain and verify how the transaction volume can be attributed to Merkle Science’s Infrastructure.
1.2.The mechanical verification will be based on:
-
Proof of Transaction: Public verifiable onchain transaction data
-
Proof of Infrastructure Use: Number of screened transactions, as documented on Product UI
-
Customer Status: Verified Customer evidenced by Letter of Intents/MSAs
2. Accountability Validation
2.1. Validation of the milestone can be done as follows:
-
Analytics deployment: reviewer verifiable demo post deployment
-
Licenses issuance recorded via e-mail invites to GSF/community members
3. Sustainability Timing
3.1. We can shorten the initial milestone from 24 to 18 months to maximize the number of customers onboarded to Canton before any weight is awarded. We believe that this time period is appropriate, as subsequently the weight cannot be increased but only decreased. The latest approved proposal, QCP, used a similar approach supporting the argument. Additionally this accounts for a 3 months onboarding period before customers can deploy assets via our infrastructure.
4. Weight Proportionality
4.1. We believe that the requested weight of 4.0 aligns with CIP-0094 (weight of 5.0) CIP-0085 (weight 6.5) for deploying infrastructure and accelerating institutional adoption. The scopes and weights are approx. aligned with our CIP for the infrastructure and institutional adoption. Both proposals received a weight of 1 for the infrastructure deployments. CIP-0094 received 0.5 for 10 million in transaction volume which is mirrored on our proposal.
That said, we would like to clarify whether we should use the same standard — a $2M Canton Coin burn for +0.5 — that was used for QCP's proposal (CIP-0106) versus the initially proposed +0.5 for every $10M in Canton Coin burned. Given the new high-water mark standard, It seems sensible. The underlying reason is that the new standard requires sustaining the burned Canton Coin vs a one-time spike—but we are happy to proceed with either.
5. High Water Mark
5.1. We incorporated the latest edits regarding the "High Water Mark" from the QCP proposal. In addition to those edits, we included a clear percentage breakdown of weight reduction. We changed the threshold to 50% versus the initially suggested 80% aligned to the most recent approval for CIP-0106. Let me know if those tiered adjustments help to sharpen the implementation of potential weight adjustments.
I am looking forward to the community's feedback.
Best regards,
Justus
____________________________________________________________________________
Add Merkle Science’s Predictive Analytics as a Weight [4] SV
CIP: TBD
Title: Add Merkle Science’s Predictive Analytics as a Weight [4] SV
Author: Dr. Justus Delp
Discussions-To:
Comments-Summary:
Comments-URI:
Status: DRAFT
Type: Governance
Created: 2020-12-16
Approved:
License: CC0-1.0
License-Code:
Post-History: https://lists.sync.global/g/cip-discuss/topic/cip_tbd_add_merkle/117664005
Requires:
Replaces: CIP TBD - Merkle Science SV Weight of 2.0 - 2026
Superseded-By: CIP TBD - Merkle Science SV Weight of 2.0 - Feb 2026
Abstract
This CIP proposes Merkle Science to join the Canton Foundation by adding Merkle Science as a Weight [ ] SV:
1) Natively integrate the Canton Network to protect economic activities from illicit and sanctioned activities.
2) Actively accelerate the institutional adoption via 100+ global customers.
Ecosystem Protection: Merkle Science will deploy its industry-leading predictive analytics to enable real-time detection of sanctioned and illicit activity. This serves as a foundational layer of network security required to meet increasing regulatory obligations for financial institutions and stablecoin issuers. Such infrastructure is a prerequisite for institutional adoption of Canton.
Institutional Adoption: The initial onboarding of a stablecoin issuer is expected to generate 15M+ transactions annually beginning April 2026. Within 90 days of approval, Merkle Science will make Canton available to 100+ customers, including global exchanges, custodians, stablecoin issuers, and wallets. At least three enterprise customers generating a minimum of 30M in annual transaction volume will go live on Canton within six months, supported by letters of intent.
Motivation
Ecosystem Protection: Regulators (FATF, OCC, SEC, CFTC) and financial institutions expect embedded security infrastructure capable of handling complex transaction flows across wallets, DEXs, bridges, and smart contracts—particularly against sophisticated actors (e.g., state-sponsored groups such as DPRK). Merkle Science delivers proven predictive analytics designed to supersede traditional crypto compliance models, which are increasingly insufficient for today’s threat landscape.
Institutional Adoption: Merkle Science acts as a critical bridge between blockchain infrastructure and financial institutions, exchanges, wallets, and stablecoin issuers. Native integration will enable 100+ existing Merkle Science customers to deploy liquidity and economic activity on Canton.
Merkle Science will actively accelerate adoption by:
-
Onboarding one stablecoin issuer (Haycen) by April 2026.
-
Onboarding at least three enterprise customers generating over 30M in annual transaction volume within six months.
This delivers measurable institutional adoption and increases the utility and burn of Canton Coin.
Milestone Specification
Deliverable
Acceptance Criteria
Deadline
Weight Earned
Activating Predictive Risk Analytics for Institutional Adoption
-
Predictive AI-Risk Detection: Deliver proprietary heuristics and behavioral analytics on Canton to identify sanctioned and illicit actors based on transaction timing and volume patterns.
-
Provide two complimentary enterprise licenses to the Canton Foundation.
-
Provide freemium licenses to featured applications (up to 1,000 screenings per year per application).
-
The reward is linked to the guaranteed uptime of 99% and approval of the GSF, with the option to revocate the SV weight if the network’s evolving security needs are not met.
If service lapses or the Foundation does not find the product to meet its needs and the needs of the community, it can recommend revocation of this SV Weight at that time
3 months from approval
+1.0
Canton Coin Burn via Institutional Activity
-
Earn 0.5 weight for every $10M in network fees generated, attributable to Merkle Science Infrastructure.
-
Eligible activities include:
-
Payments
-
Minting and redemptions
-
Swaps
-
Settlements
-
The reward weight is linked to at least 50% sustained network fees measured over the preceding 265 days after the initial 18 months. If the volume is below 50% the weighting can be reduced or fully revoked, as outlined under Weight Adjustment.
If burn drops below 80% of its high water mark (over preceding 265 days) after the 24 month period, SV Weight may be reduced proportionally or revoked depending on Foundation recommendation
18 months from the approval
Max weight of +3
+0.5 for every USD $10M equivalent of canton coin burned via Merkle Science’s Infrastructure
Approval Criteria: Eligible Burn & Sustainment Criteria
+0.5 for an eligible burn of USD $10,000,000 equivalent in Canton Coin via Merkle Science infrastructure, up to a maximum of 3.0.
Eligible burn criteria will be measured by entity including:
-
Payments
-
Minting and redemptions
-
Swaps
-
Settlements
Implementation of Weight Adjustment - High Water Mark
The table below outlines a proportionate weight reduction for the second milestone in case the sustained Canton Coin Burn drops below 50% relative to the burn rate at the time of the award. For every 10% reduction of Canton Coin burned in USD the weight will be reduced by 0.6, resulting in a weight of 0 for less than 10% transaction fees in USD generated. In simple words, the weight will only stay at max 3. if the transaction volume does not fall below 50% measured based on the previous 265 days average. For every 10% reduction in transaction fees in USD, the weight will reduce by 0.6.
Weight Reduction for every 10% below 50%
Weight
> 50%
3.0
40% – <50%
2.4
30% – <40%
1.8
20% – <30%
1.2
10% – <20%
0.6
<10%
0
Protection of Infrastructure Contributions
The +1.0 weight tied to infrastructure deployment and complimentary licenses are exempt from the weight adjustment clause outlined below. This recognizes the permanent value of the solution and licenses that are continuously delivered to the network for the duration of the SV weight.
Measurement & Reporting
The following measurement and reporting standards will be adopted to validate the milestone delivery.
Milestone 1 Approval Criteria Accountability Validation:
-
Analytics deployment: reviewer verifiable demo post deployment
Licenses issuance: recorded via e-mail invites to GSF/community members
Milestone 2 Approval Criteria Infrastructure Verification:
-
On-Chain Verifiability: All burns must be recorded on-chain and publicly verifiable.
-
USD Conversion: Full burn amounts measured in USD based on a price source approved by the Tokenomics Working Group.
-
Price calculation methodology for converting CC in USD
-
Proof of Infrastructure Use: Number of screened transactions on an entity level, as documented on Product UI
-
Customer: Verified customer status as evidenced by Letter of Intents/MSAs
Anti-Gaming & Double-Counting Protections
The following anti-gaming and double counting protections will be adopted:
-
Burned Canton Coin may not be counted more than once across the qualifying period
-
Only Merkle Science customers’ burn is accounted for.
-
Self-cycling, wash activity, or economically circular transactions intended primarily to generate burn are explicitly excluded.
-
The Tokenomics Working Group retains discretion to exclude activity deemed non-economic or manipulative
About Merkle Science
Merkle Science is an AI-powered blockchain analytics platform providing actionable real-time intelligence. Founded in 2018, the company supports 27 blockchains and is trusted by 100+ customers, including Crypto.com, Laser Digital, Consensys, and Hudson River Trading. Merkle Science provides critical security infrastructure to drive institutional adoption by preventing high-profile threat actors from accessing on-chain financial services. The company has raised $27M in funding from Susquehanna, Uncorrelated Ventures, Digital Currency Group, and Kenetic
Rationale
-
To foster trust, transparency, and collaboration within the Global Synchronizer ecosystem, Merkle Science will apply its proprietary technologies to protect against sanctioned and illicit activities in pursuit of safeguarding institutional adoption.
-
Whilst access to our technology increases the transparency, this proposal also enhances collaboration by extending API access to the critical infrastructure and featured applications to benefit from the enterprise services.The onboarding and complimentary access is aligned with the suggested weight of 2.0 based on the current minting schedule.
-
Finally, the previously collected feedback from SVs underscore the importance of this protection to strengthen the trust within the canton community.
SV Rewards Mechanism
-
Escrow setup & operation: An escrowed Super Validator (SV) PartyID with maximum weight is established by the Foundation or an approved operator; the applicant coordinates setup with GSF and SV operators and bears all operational costs.
-
Milestones & reward release: The applicant submits proof of completed milestones and a reward calculation to the Tokenomics Working Group. Upon approval, the escrowed weight is activated to the Applicant’s SV, and a portion of Unclaimed Rewards is minted based on the approved calculation, following configuration updates by ⅔ of SV operators.
-
Failure handling: If milestones are missed, the applicant is notified, escrowed SV weight is removed via SV vote, and the Tokenomics Working Group recommends how remaining Unclaimed Rewards should be handled.
Changelog
-
Draft 2025-12-16
-
Revision 2026-02-16
-
Publication
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
Sign Up For Our Crypto Investigator Certification | Blog and Resources
On Fri, Feb 27, 2026 at 12:51 AM Yiannis Varelas via lists.sync.global <y=fivenorth.io@...> wrote:
Dear Justus,
The revised draft is much stronger IMO.
Tying weight to measurable fee generation and adding sustainability mechanics is the right foundation
and we could consider endorsing this if we can clarify the following:1. Objective Attribution
Provide a precise, auditable methodology for attributing transaction volume to Merkle’s infrastructure. This must be mechanical and independently verifiable.2. Accountability Validation
Define how the Accountability Committee will validate milestone delivery in practice, including uptime, analytics deployment, license issuance, and on-chain volume. Enforcement should be rule-based, not discretionary.3. Sustainability Timing
The 24-month review window is long. Consider an earlier or progressive retention review.4. Weight Proportionality
I'm ok with any weight as long as it's proportionate to other similar CIPs on the same spirit.
Best,
Y.
--
Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
Sign Up For Our Crypto Investigator Certification | Blog and Resources -
- Hi Justus, team, thanks for the effort with this submission.I agree that Merkle's predictive analytics is a worthwhile effort that could benefit the network, but maintain my perspective that this deliverable is better directed at the Development Fund. Given that the Super Validators have discussed and made similar conclusions regarding other dashboarding / data CIPs, I think this would be the consistent approach.Kind regards,Alex--Cumberland
- toggle quoted message Show quoted textHi Alex,Thank you for the feedback and the clarification call.As you recommended, we submitted the rewards optimization to the Development Fund and removed the second milestone. We are now requesting a weight of 1 for the infrastructure deployment and complimentary licenses, which aligns our proposal with CIP-0076. Additionally, we incorporated the exit clause requested by Eric.The final amended version of the proposal is included below. We look forward to the community's feedback.Best regards,Justus__________________________________________________
Add Merkle Science’s Predictive Analytics as a Weight [1] SV
CIP: TBD
Title: Add Merkle Science’s Predictive Analytics as a Weight [1] SV
Author: Dr. Justus Delp
Discussions-To:
Comments-Summary:
Comments-URI:
Status: DRAFT
Type: Governance
Created: 2020-12-16
Approved:
License: CC0-1.0
License-Code:
Post-History: https://lists.sync.global/g/cip-discuss/topic/cip_tbd_add_merkle/117664005
Requires:
Replaces:
Superseded-By: CIP TBD - Merkle Science SV Weight of 1.0 - March 2026
Abstract
This CIP proposes Merkle Science to join the Canton Foundation by adding Merkle Science as a Weight [1] SV:
1) Natively integrate the Canton Network to protect economic activities from illicit and sanctioned activities.
2) Actively accelerate the institutional adoption via 100+ global customers.
Ecosystem Protection: Merkle Science will deploy its industry-leading predictive analytics to enable real-time detection of sanctioned and illicit activity. This serves as a foundational layer of network security required to meet increasing regulatory obligations for financial institutions and stablecoin issuers. Such infrastructure is a prerequisite for institutional adoption of Canton.
Institutional Adoption: Merkle Science will make Canton available to 100+ customers, including global exchanges, custodians, stablecoin issuers, and wallets. At least three enterprise customers generating a minimum of 30M in annual transaction volume will go live on Canton within six months, supported by letters of intent.
Motivation
Ecosystem Protection: Regulators (FATF, OCC, SEC, CFTC) and financial institutions expect embedded security infrastructure capable of handling complex transaction flows across wallets, DEXs, bridges, and smart contracts—particularly against sophisticated actors (e.g., state-sponsored groups such as DPRK). Merkle Science delivers proven predictive analytics designed to supersede traditional crypto compliance models, which are increasingly insufficient for today’s threat landscape.
Institutional Adoption: Merkle Science acts as a critical bridge between blockchain infrastructure and financial institutions, exchanges, wallets, and stablecoin issuers. Native integration will enable 100+ existing Merkle Science customers to deploy liquidity and economic activity on Canton. This delivers measurable institutional adoption and increases the utility and burn of Canton Coin.
Milestone Specification
Deliverable
Acceptance Criteria
Deadline
Weight Earned
Activating Predictive Risk Analytics for Institutional Adoption
Predictive AI-Risk Detection: Deliver proprietary heuristics and behavioral analytics on Canton to identify sanctioned and illicit actors based on transaction timing and volume patterns.
Provide a complimentary enterprise license to the Canton Foundation.
Provide freemium licenses to featured applications (up to 1,000 screenings per year per application).
The reward is linked to the guaranteed uptime of 99% and approval of the GSF, with the option to revocate the SV weight if the network’s evolving security needs are not met.
3 months from approval
+1.0
Measurement & Reporting
The following measurement and reporting standards will be adopted to validate the milestone delivery.
Milestone 1 Approval Criteria Accountability Validation:
Analytics deployment: reviewer verifiable demo post deployment
Licenses issuance: recorded via e-mail invites to GSF/community members
About Merkle Science
Merkle Science is an AI-powered blockchain analytics platform providing actionable real-time intelligence. Founded in 2018, the company supports 27 blockchains and is trusted by 100+ customers, including Crypto.com, Laser Digital, Consensys, and Hudson River Trading. Merkle Science provides critical security infrastructure to drive institutional adoption by preventing high-profile threat actors from accessing on-chain financial services. The company has raised $27M in funding from Susquehanna, Uncorrelated Ventures, Digital Currency Group, and Kenetic
Rationale
To foster trust, transparency, and collaboration within the Global Synchronizer ecosystem, Merkle Science will apply its proprietary technologies to protect against sanctioned and illicit activities in pursuit of safeguarding institutional adoption.
Whilst access to our technology increases the transparency, this proposal also enhances collaboration by extending API access to the critical infrastructure and featured applications to benefit from the enterprise services.The onboarding and complimentary access is aligned with the suggested weight of 2.0 based on the current minting schedule.
Finally, the previously collected feedback from SVs underscore the importance of this protection to strengthen the trust within the canton community.
SV Rewards Mechanism
Escrow setup & operation: An escrowed Super Validator (SV) PartyID with maximum weight is established by the Foundation or an approved operator; the applicant coordinates setup with GSF and SV operators and bears all operational costs.
Milestones & reward release: The applicant submits proof of completed milestones and a reward calculation to the Tokenomics Working Group. Upon approval, the escrowed weight is activated to the Applicant’s SV, and a portion of Unclaimed Rewards is minted based on the approved calculation, following configuration updates by ⅔ of SV operators.
Failure handling: If milestones are missed, the applicant is notified, escrowed SV weight is removed via SV vote, and the Tokenomics Working Group recommends how remaining Unclaimed Rewards should be handled.
Changelog
Draft 2025-12-16
Revision 2026-02-16
Publication
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
On Tue, Mar 3, 2026 at 1:46 PM Alex Chen via lists.sync.global <alechen=cumberland.io@...> wrote:Hi Justus, team, thanks for the effort with this submission.I agree that Merkle's predictive analytics is a worthwhile effort that could benefit the network, but maintain my perspective that this deliverable is better directed at the Development Fund. Given that the Super Validators have discussed and made similar conclusions regarding other dashboarding / data CIPs, I think this would be the consistent approach.Kind regards,Alex--Cumberland--Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
Sign Up For Our Crypto Investigator Certification | Blog and Resources - MPCH would like to sponsor this CIP.
Hi Alex,
Thank you for the feedback and the clarification call.
As you recommended, we submitted the rewards optimization to the Development Fund and removed the second milestone. We are now requesting a weight of 1 for the infrastructure deployment and complimentary licenses, which aligns our proposal with CIP-0076. Additionally, we incorporated the exit clause requested by Eric.
The final amended version of the proposal is included below. We look forward to the community's feedback.
Best regards,
Justus
__________________________________________________
Add Merkle Science’s Predictive Analytics as a Weight [1] SV
CIP: TBD
Title: Add Merkle Science’s Predictive Analytics as a Weight [1] SV
Author: Dr. Justus Delp
Discussions-To:
Comments-Summary:
Comments-URI:
Status: DRAFT
Type: Governance
Created: 2020-12-16
Approved:
License: CC0-1.0
License-Code:
Post-History: https://lists.sync.global/g/cip-discuss/topic/cip_tbd_add_merkle/117664005
Requires:
Replaces:
Superseded-By: CIP TBD - Merkle Science SV Weight of 1.0 - March 2026
Abstract
This CIP proposes Merkle Science to join the Canton Foundation by adding Merkle Science as a Weight [1] SV:
1) Natively integrate the Canton Network to protect economic activities from illicit and sanctioned activities.
2) Actively accelerate the institutional adoption via 100+ global customers.
Ecosystem Protection: Merkle Science will deploy its industry-leading predictive analytics to enable real-time detection of sanctioned and illicit activity. This serves as a foundational layer of network security required to meet increasing regulatory obligations for financial institutions and stablecoin issuers. Such infrastructure is a prerequisite for institutional adoption of Canton.
Institutional Adoption: Merkle Science will make Canton available to 100+ customers, including global exchanges, custodians, stablecoin issuers, and wallets. At least three enterprise customers generating a minimum of 30M in annual transaction volume will go live on Canton within six months, supported by letters of intent.
Motivation
Ecosystem Protection: Regulators (FATF, OCC, SEC, CFTC) and financial institutions expect embedded security infrastructure capable of handling complex transaction flows across wallets, DEXs, bridges, and smart contracts—particularly against sophisticated actors (e.g., state-sponsored groups such as DPRK). Merkle Science delivers proven predictive analytics designed to supersede traditional crypto compliance models, which are increasingly insufficient for today’s threat landscape.
Institutional Adoption: Merkle Science acts as a critical bridge between blockchain infrastructure and financial institutions, exchanges, wallets, and stablecoin issuers. Native integration will enable 100+ existing Merkle Science customers to deploy liquidity and economic activity on Canton. This delivers measurable institutional adoption and increases the utility and burn of Canton Coin.
Milestone Specification
Deliverable
Acceptance Criteria
Deadline
Weight Earned
Activating Predictive Risk Analytics for Institutional Adoption
-
Predictive AI-Risk Detection: Deliver proprietary heuristics and behavioral analytics on Canton to identify sanctioned and illicit actors based on transaction timing and volume patterns.
-
Provide a complimentary enterprise license to the Canton Foundation.
-
Provide freemium licenses to featured applications (up to 1,000 screenings per year per application).
-
The reward is linked to the guaranteed uptime of 99% and approval of the GSF, with the option to revocate the SV weight if the network’s evolving security needs are not met.
3 months from approval
+1.0
Measurement & Reporting
The following measurement and reporting standards will be adopted to validate the milestone delivery.
Milestone 1 Approval Criteria Accountability Validation:
-
Analytics deployment: reviewer verifiable demo post deployment
Licenses issuance: recorded via e-mail invites to GSF/community members
About Merkle Science
Merkle Science is an AI-powered blockchain analytics platform providing actionable real-time intelligence. Founded in 2018, the company supports 27 blockchains and is trusted by 100+ customers, including Crypto.com, Laser Digital, Consensys, and Hudson River Trading. Merkle Science provides critical security infrastructure to drive institutional adoption by preventing high-profile threat actors from accessing on-chain financial services. The company has raised $27M in funding from Susquehanna, Uncorrelated Ventures, Digital Currency Group, and Kenetic
Rationale
-
To foster trust, transparency, and collaboration within the Global Synchronizer ecosystem, Merkle Science will apply its proprietary technologies to protect against sanctioned and illicit activities in pursuit of safeguarding institutional adoption.
-
Whilst access to our technology increases the transparency, this proposal also enhances collaboration by extending API access to the critical infrastructure and featured applications to benefit from the enterprise services.The onboarding and complimentary access is aligned with the suggested weight of 2.0 based on the current minting schedule.
-
Finally, the previously collected feedback from SVs underscore the importance of this protection to strengthen the trust within the canton community.
SV Rewards Mechanism
-
Escrow setup & operation: An escrowed Super Validator (SV) PartyID with maximum weight is established by the Foundation or an approved operator; the applicant coordinates setup with GSF and SV operators and bears all operational costs.
-
Milestones & reward release: The applicant submits proof of completed milestones and a reward calculation to the Tokenomics Working Group. Upon approval, the escrowed weight is activated to the Applicant’s SV, and a portion of Unclaimed Rewards is minted based on the approved calculation, following configuration updates by ⅔ of SV operators.
-
Failure handling: If milestones are missed, the applicant is notified, escrowed SV weight is removed via SV vote, and the Tokenomics Working Group recommends how remaining Unclaimed Rewards should be handled.
Changelog
-
Draft 2025-12-16
-
Revision 2026-02-16
-
Publication
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
On Tue, Mar 3, 2026 at 1:46 PM Alex Chen via lists.sync.global <alechen=cumberland.io@...> wrote:Hi Justus, team, thanks for the effort with this submission.I agree that Merkle's predictive analytics is a worthwhile effort that could benefit the network, but maintain my perspective that this deliverable is better directed at the Development Fund. Given that the Super Validators have discussed and made similar conclusions regarding other dashboarding / data CIPs, I think this would be the consistent approach.Kind regards,Alex--Cumberland
Dr. Justus Delp
Vice President of Business Solutions
.png)
E: justus.delp@... | W: www.merklescience.com
-

