Author: Eric Saraniecki Status: Draft Type: Governance Created: 2025-10-31 License: CC0-1.0
Abstract
This proposal recommends that Super Validator (SV) operators adopt a controlled, 10-day transition period following the spot listing of Canton Coin (CC) to move from the current fixed on-chain conversion rate mechanics toward fully dynamic, market-based price feeds.
During this transition period, each SV must update its vote for the on-chain median price at least once every 24 hours, using reasonable reference prices that reflect evolving market conditions. Each SV may independently migrate to its live market feed when, in its judgment, market liquidity and volatility conditions allow.
Motivation
At the time of listing, market price discovery for Canton Coin is expected to be highly volatile as liquidity builds and participants establish trading ranges. Immediately binding the on-chain conversion rate to a real-time external feed could transmit unnecessary volatility into on-chain tokenomics and app reward calculations.
This CIP introduces an orderly rollout mechanism that maintains stability while allowing SVs to progressively align the on-chain rate with observed market prices as confidence and depth improve.
Rationale
Volatility Management: Daily manual updates to the median price help smooth the on-chain rate while reflecting general market direction.
Operational Flexibility: Each SV can independently determine when market conditions are sufficiently stable to activate its dynamic feed.
Gradual Synchronization: The staggered transition reduces the likelihood of coordinated shocks to network tokenomics.
Proposed Changes
For the 10 days following the initial exchange listing of Canton Coin:
Each SV must update its on-chain vote for the median conversion rate at least once every 24 hours.
The reference price should be based on credible market data (e.g., Tier-1 exchange prices or consolidated averages).
SVs are encouraged to coordinate informally to maintain approximate consistency during this phase.
Each SV may independently activate its dynamic market price feed at any point within this 10-day period, once it determines market conditions (liquidity, spread stability, trading depth) are adequate.
After the 10-day window, all SVs should be fully transitioned to dynamic market feeds as defined in prior CIPs (e.g., Kaiko reference feed).
Implementation
Effective Date: Begins at timestamp of first Tier-1 exchange spot listing of CC.
Duration: 10 day - can be extended by SV vote if required
Responsible Parties: All SV operators, coordinated via the Global Synchronizer Foundation and Tokenomics Committee.
Dependencies: Market feed implementation defined under the approved data feed CIP.