Add Zero Hash as SV of Weight 7.5

Hello,

Please find the CIP-0060: Add Zero Hash as SV of Weight 10 open for discussion at the PR https://github.com/global-synchronizer-foundation/cips/pull/53. Full text below.

DA is the sponsor.  

In order to move to a vote we are requesting a Super Validator Node Operator to endorse the CIP.

Abstract:

Add Zero Hash as SV of Weight 10

About Applicant:

Zero Hash is the leading infrastructure provider for crypto, stablecoin, and tokenized asset settlement. Its embeddable, API-first platform enables regulated money movement across fiat, crypto, and stable instruments. Clients use Zero Hash to build solutions for cross-border payments, commerce, trading, remittance, payroll, tokenization, wallets, on/off-ramps, and more. Customers include Stripe, Shift4, Nuvei, Interactive Brokers, Kalshi, Franklin Templeton and Bolt.

Zero Hash Holdings is backed by investors, including Point72 Ventures, Bain Capital Ventures, and NYCA.

Zero Hash Trust Company LLC has been approved by the North Carolina Commissioner of Banks as a non-depository trust company.

Zero Hash LLC is a FinCen-registered Money Service Business and a regulated Money Transmitter that can operate in 51 U.S. jurisdictions. Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in virtual currency business activity by the New York State Department of Financial Services. In Canada, Zero Hash LLC is registered as a Money Service Business with FINTRAC.

Deliverables for full SV Reward:

Deliverable	Acceptance Criteria	Deadline	Weight Earned
Zero Hash Product Integration to Canton	Zero Hash integrates Canton Coin and USDC issued on Canton into their product suite, as well as other Canton based assets (at their sole discretion)	+ 180 Days from CIP Approval	2.5
Education, Social, and Events	* At least one of each by deadline ** Webinar ** White paper ** Social media amplification ** Joint event	+ 90 Days from CIP Approval	0.5
Adoption Incentives	Category 1 : Volume based incentives Zero Hash drives an increasing amount of its traffic through Canton through education and influence Category 2 : Strategic adopter incentives Zero Hash successfully integrates the following strategic participants (non-exhaustive) with Canton via their product(s) * Retail wallet provider(s) * Payment providers (eg Stripe, Bolt, Shift4, Nuvei) * Payroll providers (eg Remote.com) * Fund use case (eg Kalshi) * Others TBA with Tokenomics Working Group	+ 365 Days from Product Integration	1 per $150m of volume that goes through Canton  AND/OR 1 per approved Participant Max up to 7 across both categories

Milestone Mechanics: 

• The GSF Tokenomics committee commits to deliberate each proposed participant and clearly notify Zero Hash if the participant would count against the Adoption Incentives 

• Zero Hash will meet with the GSF Tokenomics committee once every 60 days and provide a progress report towards stated deliverables

SV Mechanics: 

• An ‘representative’ SV will be setup by the GSF with an SV Weight at the maximum earnable weight in this CIP

• The Applicant is responsible for all costs associated with the operation of the representative SV

• The representative SV will NOT mint rewards on a block by block basis

• All representative SV rewards will go to the Unclaimed Rewards pool

• Applicant is required to present proof of successful completed milestones to the Tokenomics Working Group

• Applicant is required to present a calculation for number of Canton Coin it should earn for meeting the requirements of the milestone

• If the Tokenomics Working Group agrees the milestone has been met and agrees with the calculation, an announcement will be sent via the Tokenomics-Announce mailing List

• ⅔ of Super Validator Operators will then assign a portion of the Unclaimed Rewards to be minted by the Applicant’s Validator

• ⅔ of the Super Validator Operators will update their configurations to allow Applicant to takeover a portion of their SV Weight on a go-forward basis

• If any milestones and associated rewards are not achieved by the deadline

• Applicant will be notified they have not met a deliverable by the GSF 

• Remaining SV Weight on the representative SV will be removed from the SV Operator configs

• The Tokenomics Working Group will make a recommendation to the SVs on what to do with the Unclaimed Rewards 

• Applicant is subject to CIP-0045 : SV Operating Requirements

• If, at any time, the Applicant has been rewarded SV Weight > 2.5, they are required to operate their SV within 6 months of crossing that Weight

• 
  

Dr. Amanda L. Martin
814-359-6544

The Linux Foundation

Director of Program Management

Github  | LinkedIn  | Calendar

All - 

 

Following our discussion regarding this CIP, I wanted to present some modifications for the group to consider for subsequent vote.  If you would prefer I posted this in cip-discuss, please let me know and I will.  Given this proposal is in response to the original vote, I thought it most appropriate to post here.

Following the previous structure:

 

 

• (NO CHANGE) Zero Hash ("ZH") Product Integration to Canton:
  • Acceptance Criteria: ZH integrates Canton Coin and USDC issued on Canton into their product suite, may include other Canton based assets at their sole discretion.
  • Deadline: +180 days from CIP approval
  • Potential Weight Earned: 2.5
  • Note: May need to consider starting the timeline around when natively issued USDC is available.
• (NO CHANGE) Education, Social, and Events:
  • Acceptance Criteria: ZH conducts at least on of each by the deadline (Webinar, White Paper, Social Media Amplification, Joint Event).
  • Deadline: +90 days from CIP approval
  • Potential Weight Earned: 0.5
• (NEW) Canton is the Exclusive Privacy-enabled Settlement Blockchain for ZH:
  • Acceptance Criteria: ZH exclusively leverages Canton for privacy-enabled on-chain settlement whenever technically possible.
  • Deadline: +180 day days from CIP approval
  • Potential Weight Earned: 0.5
  • Note: We used the "technically possible" language to address situations where an asset isn't available on Canton but aren't particularly attached to that clause.
• (MODIFIED) Adoption Incentives:
  • Acceptance and Deadlines: described below.
  • Potential Weight Earned: 4.0
  • Details:
    • 1.5 weight available during months 1-6 post integration with Canton.  0.25 weight available for each unique customer that settles > $125M of volume on Canton up to 1.5 weight total.
    • 1.0 weight available during months 7-12 post integration with Canton.  0.5 weight available for every $500M of volume settled on Canton up to 1.0 weight total.
    • 1.5 weight available during months 13-24 post integration with Canton.  0.75 weight available for every $1B of volume settled on Canton up to 1.5 weight total.

 

The total potential points for this structure is 7.5.

 

This approach does the following:

1. Maintains the integration incentive.
2. Introduces an incentive for exclusivity which we believe is merited for this type of integration.
3. Extends the adoption incentives timeline and increases the volume thresholds to align with longer-term, more material adoption.
4. Maintains participant diversity in the first 6 months of the adoption incentives, but pivots to just the notional threshold over the longer term to allow for a situation where a small number of customers significantly grows their utilization of Canton.  Seems like a good balance between diversity of adoption and depth of adoption.

 

We're very interested to hear the group's feedback so please chime in.  Ideally, assuming the group comes to consensus on this, we would be able to get feedback to ZH before the end of the week.

 

Thanks

Chris