Canopy Network Docs
  • 👋Welcome to Canopy
    • Overview
    • What is Canopy?
      • Introduction
      • Why Canopy?
        • Blockchain 101
        • Background
        • Industry State
        • Seeding the Future
        • Comparables
          • Ethereum
          • Tendermint
          • Polkadot
          • Avalanche
          • Rollups
      • Core Features
        • Peer-To-Peer Security
        • Progressive Sovereignty
        • Capital Efficient Restaking
        • Composable Architecture
        • One-Way Interoperability
        • Built-In Liquidity
        • Chain Halt Rescue
        • NestBFT
          • PoS Is Trusted
          • PoAge Is Trustless
          • VRF Leader Election
        • Checkpoints as a Service
        • United Governance
      • Tokenomics
        • CNPY
        • Staking
        • DAO Treasury Fund
        • Recursive Rewards
        • Subsidies
      • Who is Canopy for?
        • New Blockchains
        • Existing Ecosystems
        • Token Participants
    • How does Canopy work?
      • Utility
      • Consensus
      • P2P
      • State Machine
      • Storage
      • Specifications
        • CLI
        • RPC
        • Config
        • Governance Params
        • Nested Chain IDs
  • ⚒️Build
    • Build a new L1
      • Introduction
      • Building
        • Application
        • Governance
        • Testing
        • Upgrading
      • Governance
        • Straw Polling
        • Proposals
    • Connect an external chain
      • Introduction
      • Building
        • Connecting
        • Testing
        • Upgrading
      • Governance
        • Straw Polling
  • 👨‍💻Node Runner
    • Setup
    • Install
    • Configure
    • Manage
    • Debug
    • Validate
      • Get CNPY
      • Plugins Config
      • Stake
      • Manage
      • Slashing
    • Govern
  • 💪Participate
    • How To Get CNPY
    • What to do with CNPY
      • Manage
      • Earn
      • Subsidize
      • Govern
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On this page
  • Actual Exposure
  • Recursion
  • Generational Diversification
  1. Welcome to Canopy
  2. What is Canopy?
  3. Tokenomics

Recursive Rewards

PreviousDAO Treasury FundNextSubsidies

Last updated 26 days ago

Actual Exposure

➯ The utility of Canopy is to be the first for the ecosystem — seeding the Peer-to-Peer security future by sheltering Nested Chains.

When Validators perform consensus on behalf of Nested Chains, they earn 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 speculation, 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.

👋
Security Root
CNPY
subsidized