Canton Coin and the Global Synchronizer

Understanding Canton Coin’s role in the network economy

Canton Coin (CC) is the native utility token of the Global Synchronizer, providing the economic foundation for network operations.

What is Canton Coin?

Canton Coin is the native token used to:

Use	Description
Transaction fees (Traffic)	Pay for network usage when submitting transactions
Validator rewards	Incentivize infrastructure operators
Governance	Super Validators stake CC to participate

Canton Coin is implemented via Splice, the open-source infrastructure for decentralized Canton synchronizers.

Traffic: Transaction Fees

“Traffic” is Canton’s term for transaction fees. To transact on the Global Synchronizer, you need traffic credits in your validator’s traffic budget.

The two-step process:

1. Top up: Convert Canton Coin to traffic credits, which are added to the validator’s traffic budget
2. Consume: When transactions are submitted, traffic credits are deducted from the budget

Traffic credits are non-transferable—once CC is converted to traffic, it can only be used to pay for transaction fees.

How Traffic Works

Traffic costs depend on:

Factor	Impact
Transaction size	Larger transactions cost more
Computational complexity	More complex operations cost more
Network demand	May vary with network load

Traffic Management

To ensure your transactions can be processed:

1. Maintain traffic credits in your validator’s traffic budget
2. Top up by converting CC to traffic credits when the budget gets low
3. Monitor usage to plan for costs

If your validator’s traffic budget is exhausted, transactions will fail. Validators can configure auto-top-up to automatically convert CC to traffic credits when the balance falls below a threshold.

Obtaining Canton Coin

How you obtain CC depends on the environment:

Environment	Method
LocalNet	Automatically available (test CC)
DevNet	Faucet (“tapping”) provides test CC
TestNet	Faucet provides test CC
MainNet	Purchase or earn through network activity

DevNet/TestNet Faucet

On test networks, you can “tap” for free test CC:

1. Access your wallet interface
2. Use the tap/faucet functionality
3. Receive test CC (no real value)

Test CC is rate-limited and has no economic value.

MainNet Acquisition

On MainNet, CC has real economic value:

Method	Description
Exchanges	Purchase from supported exchanges
Network activity	Earn through validator operations
Direct transfer	Receive from other parties

Validator Rewards

Validators operating on the Global Synchronizer can earn CC through:

Reward Type	Description
Liveness rewards	For maintaining node availability
Transaction rewards	Share of traffic fees

Super Validators have additional reward mechanisms for operating synchronizer infrastructure.

Tokenomics

The Global Synchronizer’s tokenomics are designed to:

Goal	Mechanism
Sustain infrastructure	Rewards for operators
Ensure fair pricing	Market-driven traffic costs
Facilitate governance alignment	Stake-based participation
Foster network growth	Incentives for adoption

For detailed tokenomics, see canton.foundation.

Canton Coin vs. Other Cryptocurrencies

Aspect	Canton Coin	Other L1 Tokens
Primary use	Network utility	Varies
Privacy	Balances public via scan	Often public
Holders visible	Public via scan service	Public
Transaction fees	Pay for traffic	Pay for gas

Visibility of Holdings

CC balances and transaction history are publicly visible via the network’s scan service, similar to most other cryptocurrencies. This differs from other Canton application contracts, which are private by default and visible only to entitled parties.

Integration Considerations

For Application Developers

Consideration	Approach
Traffic estimation	Estimate costs for user operations
Top-up flows	Build automatic or user-triggered top-ups
Error handling	Handle insufficient balance gracefully
User communication	Inform users about traffic costs

For Validators

Consideration	Approach
Traffic budget monitoring	Track traffic credits balance for your hosted parties
Auto-top-up	Configure automatic CC → traffic conversion when budget is low
Reward management	Handle earned CC rewards

Next Steps

Wallets for Users

Manage your Canton Coin.

Validator Operations

Operate and earn rewards.