# CNPY

### <mark style="color:blue;">Why token?</mark>

The native **CNPY** token incentivizes Validators to provide Consensus services that supports the creation of new blockchains.&#x20;

→ This service creates an incentivized 'start-up' program that enables new blockchains to be created, launched, and matured securely — starting a self-reinforcing, [peer-to-peer](/docs/canopy-network/core-features/peer-to-peer-security.md) foundation for Web3.

### <mark style="color:blue;">Supply</mark>

The native token CNPY has no mint in the Genesis file — following managed fair launch principles.&#x20;

* Every block that is produced on Canopy Network creates new CNPY tokens.&#x20;
* The starting amount of the block reward is **80 CNPY.**
* Blocks are created approximately every `20` seconds.&#x20;
* Block rewards are halved every `3,150,000` blocks or about **2 years**.&#x20;
* The total tokens is projected to be `504,000,000` CNPY.

### <mark style="color:blue;">Distribution</mark>

The CNPY block reward is fairly distributed among actors depending on their level of participation.

**5%** of the block reward is given to the [DAO Treasury Fund](/docs/canopy-network/canopy-economics/dao-treasury-fund.md) each block

➢ The Block Reward less the DAO Cut is divided evenly among all [subsidized committees](/docs/canopy-network/canopy-economics/staking.md#committee-subsidization).

Each committee may distribute these tokens as determined by their respective protocols—but the default is:

For each block produced:

* 70% → Block Producer (miner)
* 10% → Delegate
* 10% → Nested Validator
* 10% → Nested Delegate

{% hint style="info" %}
These percents are normalized based on the number of Nested blocks produced for each Canopy block.
{% endhint %}

<mark style="color:green;">**Importantly, each block produced creates CNPY and Nested Chain token at the above distribution — resulting in a cross-pollination of tokens and actors.**</mark>


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