The Canton Foundation, an organization that promotes the development and adoption of the Canton network, confirmed the approval of the improvement proposal CIP-0097, which enables Nasdaq to join as a Super Validator (SV) in that chain.
Canton is a network designed for the issuance and management of tokenized financial assets, aimed at institutional use cases and integration with traditional financial system infrastructure.
With the approval of CIP-0097 on January 5, Nasdaq is now a validator with advanced features within the protocol, in a scheme that combines economic incentives, governance and control by verified milestones.
New crossover between traditional finance and cryptocurrency technologies
The new role of the United States financial institution in Canton Network marks a precedent in the convergence between traditional finance (TradFi) and cryptocurrency network technology.
In networks like Canton, this model aims to reduce settlement cycles by allowing tokenized assets, collateral and obligations move almost in real time and in a programmable way between institutions. Getting closer to what we see in fiat money transfer models.
In this context, Nasdaq’s role as Super Validator reinforces the interoperability and institutional trust necessary for this type of flows.
What does Nasdaq’s role as Super Validator entail?
In Canton Network, the figure of the Super Validator (SV) responds to a validation model different from that of public networks.
This is not a common validator nor a merely symbolic role, but rather an operator with reinforced attributions within the consensus, governance and economics of the protocol.
Unlike networks like Ethereum, where validation depends on token staking, Canton uses a scheme based on roles and weight assigned by governance.
In this framework, Super Validators validate blocks and transactions like any other node, but they do so with a differentiated weight within the protocol consensus, which amplifies its influence within the system.
That additional power is expressed through the so-called SV Weight (Super Validator weight), an internal unit of the protocol that defines three key dimensions:
- The effective participation of the validator in the block validation process.
- Its ability to influence governance decisions.
- The proportion of rewards you can aspire to within the network’s economic system.
The approval of CIP-0097 enables Nasdaq to access a maximum SV Weight of 10, but that weight is not granted immediately or automatically.
Unlike a classic staking model, Nasdaq does not “lock” tokens for power, but instead accumulate weight progressivelybased on the fulfillment of a series of technical and strategic milestones previously agreed with the Canton Foundation.
While these milestones are not verified, the potential weight assigned to Nasdaq remains in escrow (escrow). During that period, the associated rewards are not generated or delivered block by block, but rather accumulate in a pool of unclaimed rewards.
Only once the Canton Foundation Accountability Committee confirms that a milestone has been achieved, The corresponding weight is activated and rewards can be released.
Finally, the scheme also imposes operational obligations. If Nasdaq exceeds an SV Weight of 2.5, it is obliged to launch its own Super Validator node within a maximum period of six months.
That node initially enters the network with zero weight and increases its influence as new milestones are validated and additional SV Weight units are released.