Recursive Rewards

Actual Exposure

The utility of Canopy is to be the first Security Root for the ecosystem, seeding the Peer-to-Peer security future by sheltering Nested Chains. When Validators perform consensus on behalf of subsidized Nested Chains, they earn CNPY as well as the native token of the Nested Chain. So Validating and Delegating in the Canopy protocol earns the participant a *portfolio of tokens* - not the speculation of value accrual, actual tokens.

Recursion

Canopy's architecture promotes a self-reinforcing chain of L0s where mature Nested Chains shelter other new chains the same way their parent Security Root did for them. This means that the native assets of Canopy chains automatically have the same staking utility as their Security Root.

Generational Diversification

This means that each asset earned in the aforementioned *portfolio of tokens* enables participants to earn a new *portfolio of tokens*. This cycle is exponential and continues from generation to generation, promoting unstoppable exposure of new assets.