Canto Research Paper
What is Canto Network?
Canto, a decentralized and permissionless blockchain, that has been running for some time now and has already launched a range of core financial primitives. These include a pooled lending platform based on Compound v2, and a stablecoin that acts as both a unit of account and collateral in the ecosystem. The goal of Canto is to become the leading platform for original work by offering liquidity as a free public good, being resistant to rent extraction, and avoiding interface-driven user ownership whenever possible.
Canto is a a highly scalable, high-throughput blockchain running on a proof-of-stake (PoS) consensus mechanism and built with the Cosmos software development kit (SDK) on top of the Tendermint Core Byzantine Fault Tolerance consensus methodology.
Canto has realized the vision of the original builders that core DeFi primitives should exist as free public infrastructure (FPI). As such, Canto has launched these protocols as public utility protocols, rather than as rent-seeking entities. This approach has allowed Canto to support free public infrastructure while eliminating centralized incentives.
Canto is a community of DeFi advocates who believe in the value of free public infrastructure. There are no official foundations, presales, vesting periods, or venture backers associated with Canto. Overall, Canto is working towards a future where financial systems are accessible, transparent, decentralized, and free.
What makes Canto different from other EVMs?
Canto is a decentralized and permissionless blockchain that runs on the Ethereum Virtual Machine (EVM). There are a number of features that make Canto different from other EVMs:
1. Free public infrastructure: Canto aims to establish free public infrastructure by launching its core DeFi primitives as public utility protocols, or free public infrastructure (FPI). This means that these protocols will not have sovereign governance tokens and will not be able to extract rent in the future, which sets Canto apart from other EVMs.
2. Resistance to rent extraction: Canto is designed to be resistant to rent extraction, which means that it is working to create a DeFi ecosystem that is fair and accessible to all users, rather than one that is dominated by a few powerful actors who are able to extract value from the system at the expense of others. This is a unique feature among EVMs.
3. Minimal viable user capture: Canto aims to avoid interface-driven user ownership wherever possible. This means that Canto's public infrastructure DEXes will have no swapping interface, so all users must trade on third-party aggregators. This helps to facilitate user acquisition for new protocols and sets Canto apart from other EVMs.
Overall, these features make Canto a unique and innovative player in the world of decentralized finance (DeFi).
What is the Canto Token?
The Canto network has introduced a native token, $CANTO, which is used to pay gas fees for transactions and can also be staked with validators to help secure the network. At genesis, the initial total supply of $CANTO is 1,000,000,000 (one billion) tokens, with an initial circulating supply of 150,000,000 (one-hundred and fifty million) tokens.
The initial circulating supply of $CANTO tokens is allocated as follows: 130,000,000 $CANTO (13%) for initial contributors, and 20,000,000 $CANTO (2%) for Settlers of Canto who took part in the launch of the testnet. The remaining total supply of $CANTO is allocated to long-term liquidity mining (45%), medium-term liquidity mining (35%), and future public goods grants (5%), as determined by governance votes by the Canto DAO.
To maintain the security of the Canto network, the total max supply of $CANTO inflates over time at a decreasing rate. All tokens from inflation are distributed to $CANTO stakers, based on their stake in the network. In the first 30 day period, $CANTO will inflate at a 19.84% APR, with the Canto DAO voting to adjust emissions as appropriate for subsequent periods. The goal is for the inflation of $CANTO to tend towards zero over time.
What is the Note Token?
$NOTE is over-collateralized unit of account , meaning that it is backed by a collateral of stablecoins such as USDC and USDT that are held by the Canto Lending Market (CLM). This ensures that the value of $NOTE is consistently pegged to $1, providing a stable and predictable currency for DeFi transactions.
In addition to its role as a stable unit of account, $NOTE also has the unique feature of being capital efficient. This means that the stablecoin collateral backing $NOTE can be lent out to other participants, allowing DeFi users to earn a return by holding $NOTE on the Canto platform.
All of the interest charged by the accountant, the smart contract responsible for managing the circulation of $NOTE, is earmarked for funding public goods and is held in the Community Treasury, which is governed by the Canto DAO.
Overall, the $NOTE token plays a critical role in the Canto ecosystem, providing a stable and reliable unit of account for users and helping to support the growth and development of the platform as a whole.
Who Created Canto?
Canto was created by community of developers, including twitter users s⋐ott (@scott_lew_is) and Plex (@Plex_Official), who have experience in high-frequency trading, mechanism design, and software development. This community is dedicated to exploring and developing DeFi in order to support the growth and evolution of the ecosystem.
Conclusion
Canto is a highly speculative and risky investment. The success of this project depends on the growth and strength of the community, and it is possible that it could either greatly increase in value or fail completely within the next few years. As an invested individual, I will be slowly accumulating more of this coin over the next few months, though it will remain a small portion of my portfolio for the time being. This project could be considered a community coin as its success is largely dependent on the support and participation of the community.
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Not financial, legal or tax advice of any kind. This is purely educational. These are my personal views and should not be treated as anything else please Subscribe