Canton Network's Unique Approach to Tokenomics: No ICO, Just Innovation

Canton Network's Unique Approach to Tokenomics: No ICO, Just Innovation

The blockchain landscape is fiercely competitive, with new protocols like Canton Network emerging to challenge established giants like Ethereum and Solana. Taking a unique path, Canton has chosen to forgo an initial coin offering (ICO) and instead focus on long-term growth and robust tokenomics aimed at serving large-scale institutions. This article explores the strategic choices made by Canton and its implications for the future of blockchain.

Key Takeaways

Canton Network is a new layer-one blockchain designed for financial institutions, emphasizing secure and interoperable transactions.
The co-founder Yuval Rooz highlights the importance of structured tokenomics and avoiding ICOs for sustainable growth.
The network aims to offer a privacy model that balances compliance with regulatory requirements while enabling user anonymity.
Major funding and support have positioned Canton for a key role in real-world asset tokenization.

The Rise of Canton Network

The blockchain ecosystem hosts a variety of smart contract protocols, making it difficult for newcomers to gain traction. Canton Network, a fresh contender in this arena, is entering a highly competitive space traditionally dominated by influential players like Ethereum and Solana. Along with newcomers like Sui and Aptos, Canton is challenging the notion that there are too many blockchains, with its development over the past decade showing careful planning and execution.

In an exclusive interview with Cointelegraph’s Chain Reaction, Yuval Rooz, co-founder of Digital Asset, shared insights into the origins and motivations of Canton Network, emphasizing their choice to forgo an ICO during its development. “Our thesis was centered around serving large-scale institutions. We were patient; we didn't do an ICO or a token pre-mine, as we have carefully considered our tokenomics,” Rooz explained.

Designed for Financial Institutions

Canton Network aims to cater to the needs of financial institutions, providing a platform for secure, interoperable, and privacy-preserving transactions. The architecture is described as a ‘network of networks’, focusing on real-world asset (RWA) tokenization, trading, and settlement.

In 2025, the protocol and its native token garnered significant attention following Digital Asset's successful completion of a $135 million funding round aimed at developing the Canton ecosystem further. Additionally, Tharimmune, a biotech firm, secured $540 million in private funding to establish a Canton Coin (CC) digital asset treasury, planning to acquire and stake CC tokens to act as a super validator for the network.

Related: Tharimmune makes $540M bet on Canton Coin in crypto treasury push

A Measured Approach to Development

Yuval Rooz elaborated on the gradual strategy of creating and launching Canton Network. In 2020, a permissioned chain was established to assess its performance and understand user requirements. Rooz noted that they gained valuable insights from the challenges faced by other layer-one protocols and how established networks like Ethereum have struggled with operational adjustments.

He articulated the complexities involved after launching a public network, stating, “Once it’s live and used by many builders, making changes becomes exceedingly difficult. I believe public permissionless chains will struggle to implement privacy features later on without disrupting their communities.”

Privacy in Transactions: A Critical Focus

Privacy remains a hot topic in the cryptocurrency discussion, with protocols like Zcash gaining a significant following due to their focus on privacy features. Rooz recognized the importance of this concept in the industry while noting that, historically, many cryptocurrency advocates did not prioritize privacy. “For years, we faced skepticism from crypto advocates when we emphasized the need for privacy. They argued against it, suggesting that the essence of cryptocurrency was the absence of privacy,” Rooz shared.

According to Rooz, the nature of privacy varies widely, and technologies like zero-knowledge proofs (ZK), which underpin both Zcash and Canton, serve different purposes. “ZK reflects those who desire a user experience akin to cash, ensuring no one knows your assets. This perspective distinctly differs from Bitcoin,” he noted.

Regulatory compliance is also a consideration; financial entities must observe transactions to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) directives. Rooz explained, “Unlike Zcash, Canton’s privacy model allows for information sharing on a need-to-know basis. This means regulators can request specific user activity for compliance purposes.”

Digital Asset has gained support from notable financial institutions, attracting investments from key players like BNP Paribas, Circle Ventures, Citadel Securities, the Depository Trust and Clearing Corporation (DTCC), and Goldman Sachs during its recent funding round.

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