Canton Network proposes CIP to settle synchronizer traffic fees through CC burns

Canton Network proposes CIP to settle synchronizer traffic fees through CC burns

N
News Editor
2026-10-09 13:25:13
Canton Network has published a tokenomics CIP draft titled "Universal Burn and Synchronizer Pricing," proposed by Yiannis Varelas of 5North and Shaul Kfir of Digital Asset. The proposal would require all production synchronizers on the Canton mainnet, including Dedicated Synchronizers, to pay network traffic fees priced in U.S. dollars and settled on-chain through the burning of Canton Coin (CC). It also says deployment and operation of Dedicated Synchronizers would become permissionless, while activity on those synchronizers would be included in validator and application rewards. Under the draft, pricing for the Global Synchronizer would remain unchanged at $60 per MB, and test environments would stay free to use. Dedicated Synchronizers could receive throughput-based discounts and additional discounts for making long-term usage commitments backed by CC collateral. The proposal sets out a two-phase rollout, with Universal Burn expected in the first quarter of 2027 and pricing curves and discounts expected to take effect in the third quarter of 2027.

Canton Network has published a tokenomics CIP draft called "Universal Burn and Synchronizer Pricing," proposed by Yiannis Varelas of 5North and Shaul Kfir of Digital Asset.

Proposal would standardize traffic fee settlement across synchronizers

Under the draft, all production synchronizers on the Canton mainnet, including Dedicated Synchronizers, would be required to pay network traffic fees priced in U.S. dollars and settled on-chain through the burning of Canton Coin (CC).

The proposal also says deployment and operation of Dedicated Synchronizers would become permissionless. Activity on those synchronizers would also be included in validator and application rewards.

Current setup for global and dedicated synchronizers

At present, activity routed through the Global Synchronizer already results in CC burns. Dedicated Synchronizers, by contrast, have previously paid Digital Asset through commercial software licensing, and that fee is set to be phased out as Digital Asset open-sources the core network.

Pricing and discount structure

According to the draft, pricing for the Global Synchronizer would remain unchanged at $60 per MB, while test environments would continue to be free.

Dedicated Synchronizers could receive discounts based on throughput. They could also choose to post CC as collateral and make long-term usage commitments in exchange for additional discounts. The specific pricing curve and parameters would be introduced in a later CIP.

Implementation timeline

The draft lays out a two-phase rollout. Phase one is expected in the first quarter of 2027, when the Universal Burn mechanism would go live. Phase two is expected in the third quarter of 2027, when the pricing curve and discounts would take effect.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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