Add Merkle Science’s Predictive Analytics as a Weight 1 SV

Justus,

Thank you  for the proposal. MPCH would like to either sponsor or endorse. 

Kinga Z. Bosse

COO|MPCH|www.mpch.com

Book time to meet with me

 

From: cip-discuss@... <cip-discuss@...> on behalf of Dr. Justus Delp via lists.sync.global <justus.delp=merklescience.com@...>
Date: Thursday, February 5, 2026 at 7:12 PM
To: cip-discuss@... <cip-discuss@...>
Subject: [cip-discuss] CIP-TBD: Add Merkle Science’s Predictive Analytics as a SV with a 2.0 Weight (Max 4.0)

You don't often get email from justus.delp=merklescience.com@.... Learn why this is important

Dear CIP Community,

 

Thank you for your contributions in our preliminary discussions. As a next step, I am sharing our CIP proposal which outlines Merkle Science's value proposition to the ecosystem. We look forward to your feedback.

 

You can find the G-Doc to comment here: https://docs.google.com/document/d/1br4Hpo-u4ASi5h6DBuE2mYzvWVU-ElLPD2-TCl4oibE/edit?usp=sharing 

__________________________________________________________

 

Add Merkle Science’s Predictive Analytics as a SV with a 2.0 Weight, (Max 4.0)

CIP: TBD

Title: Add Merkle Science’s Predictive Analytics as a SV with a 2.0 Weight, (Max 4.0)

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: 

Requires: 

Replaces: 

Superseded-By:

Abstract

This CIP proposes Merkle Science to join the Canton Foundation by adding Merkle Science as SV with a Weight 2.0 (Max 4.0) delivering three important outcomes: 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, and 3) optimize the rewards program for featured applications. 

 

• Ecosystem Protection: Merkle Sciences is going to deploy its behavioral analytics enabling real time detection of sanctioned and illicit activity. This is a fundamental building block of network security to meet heightening regulatory obligations for financial institutions and stablecoin companies. As such, it is prerequisite to boost institutional adoption of Canton. To realise these benefits, Merkle Science will provide two complimentary enterprise Compass licenses to the Canton Foundation enabling them to detect and shield their Canton operations from sanctioned and illicit activity. Additionally, system relevant infrastructure such as the Loop wallet will receive complimentary access to safeguard 3.8M transactions every day.

• Institutional Adoption: The first onboarding of a stablecoin issuer is expected to generate 15M+ transactions will take place by April 2026. Due to this there is urgency for us to onboard Canton. Within 90 days, Merkle Science will make Canton available to 100+ customers including global exchanges, custodians, stablecoin issuers, and wallets. No less than 3 enterprise customers generating at least 30M in transaction volumes will go live in Canton within six months.

• Rewards Optimization: To support the Canton Foundation, Merkle Science will develop a featured application framework to distinguish which applications drive long term economic value versus featured applications that are primarily incentivized by the rewards program. Distinguishing between different types of featured applications sharpens the effectiveness of rewards program - maximizing the impact of the approx. 17M Canton Coins (CC) that are distributed daily.

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 - especially against sophisticated actors (e.g., state-sponsored groups DPRK). Merkle Science addresses the need to supersede traditional crypto compliance models, which are no longer sufficient for today’s threat landscape. To realize the benefits, Merkle Science will provide complimentary enterprise Compass licenses to safeguard on chain liquidity and to prevent reputation and potentially irrevocable trust erosion. This is a prerequisite to support the onboarding of Merkle Science’s 100+ customers to Canton.

• Institutional Adoption: Merkle Science acts as a critical bridge between blockchain infrastructure and financial institutions, exchanges, wallets and stablecoins. The native integration will provide 100+ customers access to deploy liquidity on Canton. In support of Canton’s growth, Merkle Science will actively accelerate the institutional adoption by onboarding a stablecoin issuer to Canton, along with no less than 3 enterprise customers generating over 30M in transaction volumes within six months. 

• Rewards Optimization: The featured application rewards have attracted a wealth of innovation to the Canton ecosystem. Yet, developing real-time insights on growth trends is critical to maximize the impact of the reward program. Currently the rewards are distributed based on activity in conjunction to featured application markers. This structure obscures the Foundation to fund featured applications that are not primarily driven by short term rewards, but to harness the efficiency gains of the Canton Network.  Aligned with the proposed change (CIP Traffic-Based App Rewards) of relying on actual traffic spent on transactions, insights into the type of activity are necessary to understand which themes are driving significant activity on the network on a category vs featured application level. To do so, Merkle Science will deploy its real time blockchain analytical services to systematically categorise the applications. This enables the Foundation to optimize the rewards program based on the underlying growth drivers. Simultaneously, insights into the effectiveness protect financial institutions from exposure to incentive-induced transaction activity that is not contributing long term economic value.

Milestone Specification

Deliverable	Acceptance Criteria	Deadline	Weight Earned
Activating Predictive Risk Analytics	Predictive Risk Detection: Deliver proprietary heuristics and behavioral analytics on Canton to identify sanctioned and illicit actors based on transaction timing and volume patterns, strengthening network trust and regulatory readiness for institutional adoption.	90 days from approval	0.5
Institutional Onboarding	Extend Canton support to 100+ customers globally, i.e. financial institutions, custodians, stablecoin issuers, and wallets. Integrate Haycen to launch a stablecoin on Canton by April 2026, generating 15M+ transactions within 2 years. Onboard 3 enterprise customers within 6 months, evidenced by letters of Intents, generating at least 30M in transaction volumes in the first year.	180 days from approval	Max weight 2.5  +0.5 for every 15M in transaction volumes
Complimentary Licenses to Loop & Canton Foundation	Integrate Compass API with at least one infrastructure provider, e.g. Loop wallet, to protect up to 3.8M transactions against illicit and sanctioned activities every day. Evidence will include onchain volumes.  Provide two complimentary licenses to the Canton Foundation. Provide freemium licenses to featured applications for up to 1000 screenings per year.	120 days from approval	0.5
Rewards Optimization in a Custom Real-Time Dashboard	Optimize Rewards: Deploy behavioral analytics to distinguish value-driven application usage from activity that exists primarily due to reward incentives such as internal payments amplifying transaction volumes. Real-Time Dashboard: Real-time analysis to understand how the 17M CC ($2M) a day are allocated across the featured application ecosystem. Growth insights are surfaced to the committee to support incentive tuning, reward allocation, and long-term ecosystem health.	120 days from approval	0.5

About Merkle Science

Merkle Science is an AI-powered blockchain analytical platform that provides actionable real-time intelligence. We have been operating since 2018, spanning 27 blockchains trusted by 100+ customers with leading institutions such as Crypto.com, Laser Digital, Consensys, and Hudson River Trading. Merkle Science provides security infrastructure and business intelligence critical to drive institutional adoption by blocking high profile threat actors from accessing financial services. The company has raised $27MM 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 Reward Mechanics

• An extraBeneficiary PartyID associated with the ‘escrowed’ Super Validator will be setup by the Foundation, or another SV node operator approved to provide SV rewards escrow services, with an SV Weight at the maximum earnable weight.
• The Applicant is responsible for coordinating the process of setting up the escrowed weights with the GSF and the operator of the SV node.
• The Applicant is responsible for all costs associated with the operation of the escrow SV.
• The escrow SV will NOT mint rewards on a block-by-block basis.
• All escrow SV rewards will go to the Unclaimed Rewards pool.
• ⅔ of the Super Validator Operators will update their configurations to allow the escrowing SV node to host the full weight to be earned by the given Super Validator.
• Applicant is required to present proof of successful completed milestones to the Tokenomics Working Group.
• Applicant must present a calculation for the number of Canton Coin it should earn for meeting milestone requirements.
• If the Tokenomics Working Group agrees the milestone has been met and approves the calculation, an announcement will be sent via the Tokenomics-Announce mailing list.
• The GSF will update the extraBeneficiary to an active PartyID controlled by that Super Validator.
• ⅔ of Super Validator Operators will then assign a portion of the Unclaimed Rewards to be minted by the Applicant’s Validator, based on the approved calculation.

Failure to Meet Milestones

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 assigned to the extraBeneficiary SV will be removed from the GSF node configuration, and the total SV weight of the GSF SV node will be reduced by the same amount by a vote of the Super Validators.
• The Tokenomics Working Group will make a recommendation to the SVs on what to do with the Unclaimed Rewards.

Changelog

• Draft 2025-12-16

• Revision 2026-01-05

• Publication 

Copyright

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