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The Canton Network incentivizes application providers through a reward system tied to network activity. Applications that generate value on the network can earn Canton Coin (CC) as rewards. The network is transitioning from on-ledger activity markers to traffic-based app rewards under CIP-0104. Both mechanisms require your application to be featured.

Traffic-Based App Rewards (CIP-0104)

With traffic-based app rewards enabled, featured app providers earn rewards automatically based on actual network traffic — no application code changes are required. Once traffic-based rewards are active, app providers may remove calls that create FeaturedAppActivityMarker contracts to save on traffic costs. Traffic-based rewards can be shared with beneficiaries before minting. See Reward Sharing for details. For details on how traffic-based app rewards are computed, see Traffic-Based App Rewards. Only featured applications are eligible for app rewards — whether through traffic-based rewards or activity markers (see CIP-0078). To get your application featured:
  1. Deploy your application on the Canton Network (DevNet, TestNet, or MainNet)
  2. Submit a request to the Canton Foundation through the application process
  3. The tokenomics committee reviews the submission, evaluating the application’s contribution to the network
  4. Upon approval, an SV governance vote registers your application as featured

Self-Featuring on DevNet

On DevNet, you can register your application as self-featured for testing purposes. This lets you verify that your reward-earning logic works correctly before going through the formal featuring process on TestNet or MainNet. Self-featuring on DevNet does not require CF approval. It is intended purely for development and integration testing of the reward flow.

Activity Markers (Legacy)

Before CIP-0104, application rewards used on-ledger FeaturedAppActivityMarker contracts. This mechanism remains active during the transition period. The flow:
  1. Your application creates transactions on the Global Synchronizer (e.g., users exercise choices, create contracts)
  2. Your app’s automation creates a FeaturedAppActivityMarker referencing that activity
  3. SV automation validates the marker and creates an AppRewardCoupon
  4. At the end of the reward round, the coupon is included in the CC minting calculation
  5. Your application provider party receives CC proportional to the activity

Minting Delegation

If your application generates activity on behalf of external parties (e.g., end users interacting through your platform), you can delegate minting rights. Minting delegation allows a validator to mint rewards on behalf of another party, which is useful when your application’s transaction-submitting validator differs from the party that should receive the reward.

Fee Structure

Canton Network does not charge fees on CC transfers between parties. The only cost associated with network usage is traffic — the transaction fee paid by the submitting validator. Application rewards are a separate mechanism that compensates app providers for generating network activity, independent of traffic costs.

Further Reading