Number: CIP-TBD
Title: Add Franklin Templeton as a Super Validator (max weight 5)
Author(s): Sandy Kaul
Type: Governance
Status: Draft
Created: 2026-06-04
License: CC0-1.0
Abstract
Summary
This CIP establishes a milestone-based Super Validator commitment framework for Franklin Templeton on the Canton Network.
Franklin Templeton has already deployed a tokenized fund on Canton. This proposal focuses on expanding on-chain treasury management capabilities, enabling 24x7 create and redeem functionality backed by on-chain cash delivery, and driving measurable production adoption.
SV Weight is earned incrementally as milestones are completed and verified. Rewards accrue to escrow consistent with existing Super Validator mechanics.
The total maximum earnable SV Weight under this CIP is 5.
Motivation
Franklin Templeton is one of the most established global asset managers and has demonstrated early leadership in tokenized fund issuance. Expanding its Canton integration beyond issuance into treasury management, 24x7 create/redeem workflows, and production-scale usage materially strengthens Canton’s position as institutional financial infrastructure.
This framework incentivizes deeper operational integration rather than symbolic presence. By rewarding measurable treasury activity and real create/redeem volume backed by on-chain cash movement, the network aligns Super Validator weight with tangible ecosystem growth and financial utility.
The structure emphasizes:
Production treasury activity
24x7 operational create and redeem capability
On-chain delivery of digital cash
Scaled adoption based on measurable dollar volume
Commitment Milestones
Milestone | Requirement | Deadline from CIP Approval | SV Weight Earned | Acceptance / Evidence (TWG-verifiable) |
Treasury Management | On-chain treasury management on Canton | +6 months | +1 | Completion of at least one production treasury management transaction on Canton Mainnet, which may involve holding tokenized U.S. Treasuries, holding digital cash (stablecoins or tokenized demand deposits), or executing a repo or reverse repo transaction in support of fund operations. This milestone can also be conducted prior to CIP activation, as long as this is within 2 weeks, as this is currently planned by Franklin Templeton. |
Create / Redeem Capability | 24x7 create and redeem functionality for tokenized fund on Canton | +9 months | +1 | Enables authorized participants to create fund shares through the on-chain delivery of cash (stablecoins or tokenized demand deposits) directly to Franklin Templeton on Canton Mainnet. Redemption must similarly support the 24x7 on-chain return of cash to authorized participants. The milestone requires operational capability, not merely technical configuration. |
Adoption Bonus | Earn additional SV Weight based on cumulative dollar volume of fund shares created or redeemed | +18 months | Up to +3 | +0.5 SV Weight is earned per $100 million of qualifying production volume. Only activity executed through the on-chain treasury and cash delivery mechanism qualifies. Volume must be verifiable on-chain or via agreed reporting standards. Maximum bonus is capped at +3 SV Weight. |
Communications Requirements
To ensure transparency and ecosystem signaling:
A public announcement is required at the time of CIP approval outlining Franklin Templeton’s expanded integration plans with Canton.
A public announcement or press release is required upon completion of the Treasury Management milestone.
A public announcement or press release is required upon completion of the Create / Redeem Capability milestone.
An additional public communication is required upon achieving $1 billion in cumulative create / redeem volume on Canton.
- 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 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 Foundation
- 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
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.