Staking

Restaking

The concept of restaking allows staked participants on Canopy to reuse their bonded collateral on the Root Chain to secure multiple other Nested Chains.

➤ This design enables participants to efficiently re-apply their collateral — extending the TLV of the Security Root among the Nested Chains to alleviate the L1 cold-start problem.

Committee Subsidization

The quorum of Validators registered on the Root Chain to perform Consensus services for a Nested Chain is called a committee.

➤ A subsidized committee is a quorum that receives an allocation of the Root Chain block reward.

In order for a Committee to be subsidized it must have more than 33% of the total stake committed to it.

Here's an example:

• Validator A has 10 stake and is restaked for chain 1

• Validator B has 25 stake and is restaked for chains 1 & 2

• Validator C has 65 stake and is restaked for chain 3

• Total stake = 100

The subsidized committees in this example are chains 1 and 3

• Chain 1 → valA {10} + valB {25} / totalStake {100} = 35% ≥ 33% ✓

• Chain 2 → valB {25} / totalStake {100} = 25% < 33% ×

• Chain 3 → valC {65} / totalStake {100} = 65% ≥ 33% ✓

Delegators

Non-technical actors may participate in Canopy by being a Delegator: a Validator that never participates in BFT Consensus.

➤ These staked participants greatly influence the subsidization status of Committees as their collateral is counted towards a Nested Chain's qualification.

By staking as a Delegator — you receive Block Reward in both CNPY and the native Nested Chain assets.

Just like Validators — Delegators are able to restake their collateral towards multiple committees!