Add QCP Group as a Super Validator (weight 5.0)

thanks Yiannis - i think this is great and def something we will be able to use in other contexts going forward 

my only open question is around the timeline to achieve the burn recognition - i think 24 months is too long, i would prefer 12 but could get comfortable at 18 

On Sat, Feb 28, 2026 at 3:44 AM Yiannis Varelas via lists.sync.global <y=fivenorth.io@...> wrote:

Hi all, 

I had very good async calls and I'm posting here the updated Full CIP with the changes I proposed above
plus a summary of the changes for reference. 

Summary of Amendments

1. Recalibration of Maximum Weight

• Previous: 10.0 Maximum Weight.

• New: 5.0 Maximum Weight.

• Rationale: This reduction ensures that the SV seat remains a performance-based track rather than a dominant structural position. It balances QCP’s influence to better align with the existing validator landscape while still providing significant incentive for driving network utility.

2. Implementation of "High Water Mark" Sustainment

The reward for "Canton Coin Burn" is no longer a permanent award based on a one-time spike. It is now tied to a 3-year sustainment obligation:

• Sustainment Period: Each +0.5 weight tranche earned via activity is subject to a 3-year monitoring period from the date of approval.

• Performance Floor: A "drop in activity" is strictly defined as a >50% decline in the rolling 2-quarter average of eligible burn (USD equivalent) relative to the rate at the time of award.

• Accountability: If a decline persists for 2 consecutive quarters, the Accountability Committee has the mandate to proportionally reduce the burn-based weight.

3. Protection of Infrastructure Contributions

• The +1.0 weight tied to Application Development and RWA Tokenization (the "Infrastructure" portion) is not subject to the activity-based clawback. This recognizes the permanent value of the code and onboarding frameworks delivered to the network.

4. Strategic Shift

This amendment moves the proposal from a "milestone-hunt" to a "sustained gravity" model. It ensures that QCP’s weight as an SV is a direct and ongoing reflection of the institutional flow they bring to the Canton Network.

##################################################################################################

CIP-00xx

Title: Add QCP Group as a Super Validator (weight 5.0)

Author: Yiannis Varelas, Eric Saraniecki

Status: Draft

Type: Governance

Created: 2026-02-01

License: CC0-1.0

Abstract

QCP Group proposes to join the Canton Network as a Super Validator (SV) with a maximum potential weight of 5.0, tied to quantifiable institutional adoption, application delivery, and network economic activity milestones.

QCP brings deep product, derivatives, and collateral infrastructure expertise, proven institutional market access, and active participation in Canton ecosystem pilots (including Nasdaq and Digital Asset collaborations). QCP’s role as an SV will amplify institutional traffic, expand real-world asset tokenization, and drive measurable Canton Coin utility.

About QCP Group

QCP Group is a leading institutional crypto trading and market infrastructure firm with regulatory licenses across key jurisdictions. QCP has:

• Built institutional-grade trading and execution systems.

• Delivered collateral workflow pilots with major market operators.

• Provided liquidity and OTC services for digital assets.

• Actively engaged top-tier institutional participants in private canton infrastructure evaluations.

QCP’s participation strengthens Canton’s institutional on-chain settlement capabilities and utility proposition.

Deliverables for SV Reward (Weight 5.0)

Deliverable	Acceptance Criteria	Deadline	Weight Earned
Institutional Collateral Application Development	Complete development and validation of an end-to-end institutional collateral lifecycle workflow, including: (1) collateral agreement generation, (2) margin allocation, (3) margin confirmation, and (4) settlement. Workflow must reflect real bilateral trading relationships. Evidence includes collateral agreement records and settlement history from test trades executed on a Canton utility application.	3 months from CIP approval	+0.5
RWA Tokenization Enablement	Onboard 10 Tokenized Money Market Funds (TMMFs) onto a tokenization platform capable of issuing, bridging, and managing RWAs on-chain, with assets accurately recognized and verifiable on Canton. Evidence includes on-chain token confirmations and asset records.	3 months from CIP approval	+0.5
Canton Coin Burn via Application-Driven Economic Activity	Earn +0.5 weight for every USD $2M equivalent of Canton Coin burned, attributable to application-driven network activity. Eligible activity includes asset swaps, minting and redemption flows, derivative vault strategies, and settlement activity occurring within or across Canton applications, including burn resulting from counterparty participation. Burn must be traceable on-chain to eligible application activity.	Up to 24 months from CIP approval	+4.0 max

Total Maximum Earnable Weight: 5.0

 

Eligible Burn & Sustainment Criteria

Canton Coin Burn via Application-Driven Economic Activity

Weight Allocation:

+0.5 reward weight for every USD $2,000,000 equivalent of Canton Coin permanently burned, up to a maximum of +4.0 weight.

Eligible Burn Criteria (ALL must be met):

1. Application-Scoped Activity: Burned Canton Coin must result directly from transactions executed within, or triggered by, GSF-approved Canton applications.

2. On-Chain Verifiability: All burns must be recorded on-chain and publicly verifiable.

3. Economic Causality Requirement: Burn must be the necessary economic consequence of application usage, not discretionary.

4. Counterparty-Inclusive Attribution: Burn may include Canton Coin burned by the Applicant, Application users, or Third-party counterparties.

Sustainment Requirement (High Water Mark Activity):

Any weight earned via activity-based burn is subject to a 3-year sustainment requirement from each tranche approval to ensure "High Water Mark" activity is maintained:

• Sustainment Period: 3 years from each tranche approval.

• Drop in Activity Definition: A >50% decline in rolling 2-quarter average eligible burn (USD equivalent) relative to the reference rate at the time of the award.

• Remediation: If the decline persists for 2 consecutive quarters, the Accountability Committee reserves the right to apply a proportional weight reduction.

• Exclusions: Infrastructure-based weight (+1.0 total) is not subject to clawback. There is no additional penalty beyond the burn-based portion.

---

Anti-Gaming & Double-Counting Protections

• Burned Canton Coin may not be counted more than once across milestones or CIPs.

• 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.

Measurement & Reporting

Burn measurement will be calculated using the time-weighted average USD price of Canton Coin over the relevant settlement window, using a price source approved by the Tokenomics Working Group.

The Applicant must submit a detailed burn report including:

• Transaction hashes

• Application identifiers

• Burn amounts

• Price calculation methodology

Validation & Approval

• Each incremental +0.5 weight tranche requires Tokenomics Working Group validation.

• Upon approval, standard escrow SV reward mechanics apply.

---

SV Reward Mechanics

An extraBeneficiary PartyID tied to an escrowed Super Validator will be configured by the Canton Foundation or an approved SV operator with the full maximum weight.

• QCP will coordinate escrow configuration with the GSF and the SV node operator.

• QCP is responsible for all costs for operating the escrow SV.

• The escrow SV does not mint rewards per block; all rewards accrue to the Unclaimed Rewards Pool.

• Upon milestone completion, QCP will present proof of completion and a Canton Coin calculation for earned rewards to the Tokenomics Working Group.

• If approved, the GSF updates the extraBeneficiary to QCP’s PartyID.

• ⅔ of active Super Validator Operators will assign the approved reward portion to QCP’s Validator.

Failure to deliver milestones:

• QCP will be notified of missed deliverables.

• Remaining unearned weight is removed from the escrow SV.

---

Motivation

The Canton Network is uniquely positioned for enterprise adoption of privacy-preserving, interoperable digital asset infrastructure. QCP’s mandate as an SV is to shift the network from pilot into institutional flow by delivering production-grade settlement workflows, RWA onboarding at scale, and sustained transaction volume. By tying SV weight to sustained economic gravity rather than one-time spikes, this proposal ensures long-term institutional contribution to the network.

Copyright

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

 

 

This message, and any attachments, is for the intended recipient(s) only, may contain information that is privileged, confidential and/or proprietary and subject to important terms and conditions available at http://www.digitalasset.com/emaildisclaimer.html. If you are not the intended recipient, please delete this message.

thanks Yiannis - i think this is great and def something we will be able to use in other contexts going forward 

my only open question is around the timeline to achieve the burn recognition - i think 24 months is too long, i would prefer 12 but could get comfortable at 18 

On Sat, Feb 28, 2026 at 3:44 AM Yiannis Varelas via lists.sync.global <y=fivenorth.io@...> wrote:

Hi all, 

I had very good async calls and I'm posting here the updated Full CIP with the changes I proposed above
plus a summary of the changes for reference. 

Summary of Amendments

1. Recalibration of Maximum Weight

• Previous: 10.0 Maximum Weight.

• New: 5.0 Maximum Weight.

• Rationale: This reduction ensures that the SV seat remains a performance-based track rather than a dominant structural position. It balances QCP’s influence to better align with the existing validator landscape while still providing significant incentive for driving network utility.

2. Implementation of "High Water Mark" Sustainment

The reward for "Canton Coin Burn" is no longer a permanent award based on a one-time spike. It is now tied to a 3-year sustainment obligation:

• Sustainment Period: Each +0.5 weight tranche earned via activity is subject to a 3-year monitoring period from the date of approval.

• Performance Floor: A "drop in activity" is strictly defined as a >50% decline in the rolling 2-quarter average of eligible burn (USD equivalent) relative to the rate at the time of award.

• Accountability: If a decline persists for 2 consecutive quarters, the Accountability Committee has the mandate to proportionally reduce the burn-based weight.

3. Protection of Infrastructure Contributions

• The +1.0 weight tied to Application Development and RWA Tokenization (the "Infrastructure" portion) is not subject to the activity-based clawback. This recognizes the permanent value of the code and onboarding frameworks delivered to the network.

4. Strategic Shift

This amendment moves the proposal from a "milestone-hunt" to a "sustained gravity" model. It ensures that QCP’s weight as an SV is a direct and ongoing reflection of the institutional flow they bring to the Canton Network.

##################################################################################################

CIP-00xx

Title: Add QCP Group as a Super Validator (weight 5.0)

Author: Yiannis Varelas, Eric Saraniecki

Status: Draft

Type: Governance

Created: 2026-02-01

License: CC0-1.0

Abstract

QCP Group proposes to join the Canton Network as a Super Validator (SV) with a maximum potential weight of 5.0, tied to quantifiable institutional adoption, application delivery, and network economic activity milestones.

QCP brings deep product, derivatives, and collateral infrastructure expertise, proven institutional market access, and active participation in Canton ecosystem pilots (including Nasdaq and Digital Asset collaborations). QCP’s role as an SV will amplify institutional traffic, expand real-world asset tokenization, and drive measurable Canton Coin utility.

About QCP Group

QCP Group is a leading institutional crypto trading and market infrastructure firm with regulatory licenses across key jurisdictions. QCP has:

• Built institutional-grade trading and execution systems.

• Delivered collateral workflow pilots with major market operators.

• Provided liquidity and OTC services for digital assets.

• Actively engaged top-tier institutional participants in private canton infrastructure evaluations.

QCP’s participation strengthens Canton’s institutional on-chain settlement capabilities and utility proposition.

Deliverables for SV Reward (Weight 5.0)

Deliverable	Acceptance Criteria	Deadline	Weight Earned
Institutional Collateral Application Development	Complete development and validation of an end-to-end institutional collateral lifecycle workflow, including: (1) collateral agreement generation, (2) margin allocation, (3) margin confirmation, and (4) settlement. Workflow must reflect real bilateral trading relationships. Evidence includes collateral agreement records and settlement history from test trades executed on a Canton utility application.	3 months from CIP approval	+0.5
RWA Tokenization Enablement	Onboard 10 Tokenized Money Market Funds (TMMFs) onto a tokenization platform capable of issuing, bridging, and managing RWAs on-chain, with assets accurately recognized and verifiable on Canton. Evidence includes on-chain token confirmations and asset records.	3 months from CIP approval	+0.5
Canton Coin Burn via Application-Driven Economic Activity	Earn +0.5 weight for every USD $2M equivalent of Canton Coin burned, attributable to application-driven network activity. Eligible activity includes asset swaps, minting and redemption flows, derivative vault strategies, and settlement activity occurring within or across Canton applications, including burn resulting from counterparty participation. Burn must be traceable on-chain to eligible application activity.	Up to 24 months from CIP approval	+4.0 max

Total Maximum Earnable Weight: 5.0

 

Eligible Burn & Sustainment Criteria

Canton Coin Burn via Application-Driven Economic Activity

Weight Allocation:

+0.5 reward weight for every USD $2,000,000 equivalent of Canton Coin permanently burned, up to a maximum of +4.0 weight.

Eligible Burn Criteria (ALL must be met):

1. Application-Scoped Activity: Burned Canton Coin must result directly from transactions executed within, or triggered by, GSF-approved Canton applications.

2. On-Chain Verifiability: All burns must be recorded on-chain and publicly verifiable.

3. Economic Causality Requirement: Burn must be the necessary economic consequence of application usage, not discretionary.

4. Counterparty-Inclusive Attribution: Burn may include Canton Coin burned by the Applicant, Application users, or Third-party counterparties.

Sustainment Requirement (High Water Mark Activity):

Any weight earned via activity-based burn is subject to a 3-year sustainment requirement from each tranche approval to ensure "High Water Mark" activity is maintained:

• Sustainment Period: 3 years from each tranche approval.

• Drop in Activity Definition: A >50% decline in rolling 2-quarter average eligible burn (USD equivalent) relative to the reference rate at the time of the award.

• Remediation: If the decline persists for 2 consecutive quarters, the Accountability Committee reserves the right to apply a proportional weight reduction.

• Exclusions: Infrastructure-based weight (+1.0 total) is not subject to clawback. There is no additional penalty beyond the burn-based portion.

---

Anti-Gaming & Double-Counting Protections

• Burned Canton Coin may not be counted more than once across milestones or CIPs.

• 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.

Measurement & Reporting

Burn measurement will be calculated using the time-weighted average USD price of Canton Coin over the relevant settlement window, using a price source approved by the Tokenomics Working Group.

The Applicant must submit a detailed burn report including:

• Transaction hashes

• Application identifiers

• Burn amounts

• Price calculation methodology

Validation & Approval

• Each incremental +0.5 weight tranche requires Tokenomics Working Group validation.

• Upon approval, standard escrow SV reward mechanics apply.

---

SV Reward Mechanics

An extraBeneficiary PartyID tied to an escrowed Super Validator will be configured by the Canton Foundation or an approved SV operator with the full maximum weight.

• QCP will coordinate escrow configuration with the GSF and the SV node operator.

• QCP is responsible for all costs for operating the escrow SV.

• The escrow SV does not mint rewards per block; all rewards accrue to the Unclaimed Rewards Pool.

• Upon milestone completion, QCP will present proof of completion and a Canton Coin calculation for earned rewards to the Tokenomics Working Group.

• If approved, the GSF updates the extraBeneficiary to QCP’s PartyID.

• ⅔ of active Super Validator Operators will assign the approved reward portion to QCP’s Validator.

Failure to deliver milestones:

• QCP will be notified of missed deliverables.

• Remaining unearned weight is removed from the escrow SV.

---

Motivation

The Canton Network is uniquely positioned for enterprise adoption of privacy-preserving, interoperable digital asset infrastructure. QCP’s mandate as an SV is to shift the network from pilot into institutional flow by delivering production-grade settlement workflows, RWA onboarding at scale, and sustained transaction volume. By tying SV weight to sustained economic gravity rather than one-time spikes, this proposal ensures long-term institutional contribution to the network.

Copyright

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

 

 

This message, and any attachments, is for the intended recipient(s) only, may contain information that is privileged, confidential and/or proprietary and subject to important terms and conditions available at http://www.digitalasset.com/emaildisclaimer.html. If you are not the intended recipient, please delete this message.