Canton Network Participation Guide: How Validators and Users Earn CC
Canton does not use traditional proof-of-stake. This guide explains Canton's actual participation model — how validators operate, how Super Validators lock CC under CIP-0105, and how users earn CC rewards through active network use.
If you came here looking for a guide to staking Canton Coin for passive yield, the most important thing to know upfront is: Canton does not work that way.There is no delegation mechanism, no staking APY, no unbonding period, and no slashing. Canton's reward system is built around active participation — and understanding this distinction changes how you should think about CC economics entirely.
Canton's Consensus: Proof-of-Stakeholder
Canton uses proof-of-stakeholder consensus — not proof-of-stake. In proof-of-stakeholder validation, only the parties who are actual stakeholders in a transaction validate it. When Goldman Sachs settles a DvP trade with BNY Mellon on Canton, those two institutions validate that transaction alongside the relevant Super Validators — not random token holders who happen to hold CC.
For sequencing across the Global Synchronizer, Canton uses a 2/3 majority Byzantine Fault Tolerant (BFT) consensus protocol operated by Super Validators. This is a known, vetted set of institutional operators — not a permissionless validator set selected by token holdings.
How CC Rewards Are Distributed
CC is minted every 10 minutes and distributed based on active network participation:
| Participant Type | 2026 Share | Requirement |
|---|---|---|
| Application developers | 62% | Deploy Daml applications generating transaction volume |
| Super Validators | 20% | Operate Global Synchronizer infrastructure |
| Active users | 15% | Transact on Canton applications |
| Infrastructure operators | ~3% | Run additional network infrastructure |
Notice what is missing from this table: passive token holders. Unlike Ethereum where ~100% of inflation goes to stakers, Canton explicitly routes rewards to participants who create network value.
Becoming a Canton Validator
Canton validators are permissioned institutions, not a permissionless set open to anyone staking tokens. To operate a Canton validator, you apply through the Canton Foundation and must satisfy operational and compliance requirements. The key facts:
- ◆No CC minimum — There is no protocol-mandated CC stake to run a validator. Capital lockup is not the entry barrier.
- ◆No slashing — Canton has no automated slashing mechanism. Validator accountability operates through the Canton Foundation governance process and institutional reputational obligations.
- ◆Institutional access — Canton's 800+ validators include major financial institutions. The network is public and permissionless for users, but validator admission is governed.
- ◆Revenue — Validators earn CC through active participation: processing transactions for hosted parties and maintaining infrastructure.
Validator Infrastructure Providers
Institutions that want Canton validator exposure without managing their own infrastructure can work with professional node operators:
| Provider | Focus | Key Feature |
|---|---|---|
| Kiln | Institutional | SOC 2 compliant, enterprise SLAs, API integration |
| Figment | Multi-chain institutional | Compliance reporting, reward analytics, tax tooling |
| P2P.org | Institutional & enterprise | Non-custodial, 40+ network expertise |
| Blockdaemon | Enterprise VaaS | Multi-region redundancy, enterprise SLAs |
| Everstake | Institutional | 70+ network validator, non-custodial operations |
Super Validators and CIP-0105 Locking
Super Validators — the 45+ institutions including Goldman Sachs, DTCC, JPMorgan (Kinexys), and Visa that operate the Global Synchronizer — receive 20% of each CC reward round. This share decreases gradually until mid-2029.
CIP-0105 (approved March 2, 2026) introduced a voluntary locking mechanism for SVs:
- ◆Lock threshold — SVs who lock 70% of their lifetime earned CC rewards retain 100% governance voting weight.
- ◆Governance consequence — SVs who do not lock face proportionally reduced influence over Canton Improvement Proposals.
- ◆Permanence — Locked CC is permanently removed from circulation. The lock cannot be reversed.
- ◆Current scale — The top 13 SVs collectively hold 20+ billion CC (~$3B). Full adoption locks approximately $2.1B.
Regular validators (non-SVs) are not subject to CIP-0105 and have no CC locking requirement.
How Users Earn CC Rewards
If you are a retail CC holder, the most accessible path to earning CC rewards is through active use of Canton applications. Users receive 15% of each reward round proportional to their activity — transactions submitted, applications engaged with, and network participation.
This is a key philosophical difference: Canton rewards you for using the network, not for holding tokens. If you transact frequently on Canton DeFi applications (Cantex DEX, lending protocols, repo settlement tools), those transactions contribute to your user reward share.
Third-Party Yield Products on CC
Canton's protocol does not offer native passive staking yields. However, some platforms offer CC yield products:
- ◆Gate.io — ~0.43% APR on CC. A custody-based yield product, not protocol staking.
- ◆LP pools — Some Canton DEX liquidity pools offer variable yields on CC pairs. These involve impermanent loss risk and are DeFi products, not protocol rewards.
Evaluate these as DeFi opportunities with counterparty and smart contract risk — not as equivalents to protocol-guaranteed staking rewards. For a full breakdown, see our Canton DeFi yield guide.
Governance Participation
CC holders can participate in Canton governance through the Canton Improvement Proposal (CIP) process. Governance weight is held by Super Validators (with CIP-0105 locking preserving full weight) and the Canton Foundation. Individual CC holders participate through the community governance process rather than direct on-chain voting weighted by token balance.