A key belief of the Canto network is that core cryptoeconomic primitives should exist as Free Public Infrastructure. To further facilitate this vision, early Canto contributors propose the implementation of Contract Secured Revenue: a novel mechanism for smart contract developers to earn from their work.
Contract Secured Revenue, or CSR, is an opt-in fee splitting model that relays to developers to a percentage of any transaction fees paid to the network when users interact with their Canto-based decentralized applications.
CSR provides smart contract teams a new path to earn from their work without relying on extracting protocol fees from users or other rent-seeking behavior. It is designed to open a new path to economic sustainability for smart contract development in a way that upholds the network’s ethos.
To opt into CSR, developers must first deploy their smart contracts, after which they register those contracts with the CSR Turnstile smart contract by sending a single transaction from the contracts’ deployer address.
The Canto CSR model uses Non-Fungible Tokens (NFTs) to represent the right to claim a contract’s CSR. Revenue from CSR accrues gradually and automatically in the NFT smart contract every time a transaction is made, and the NFT owner can withdraw this revenue from the NFT smart contract at any time.
When registering a contract, developers can choose whether they would like to receive a new CSR NFT for that contract, or whether they would like that contract’s revenue to accrue to an existing CSR NFT. This enables single CSR NFTs to accrue CSR from multiple contracts.
Contract Secured Revenue is a contributor initiative to fulfill the vision of a shared blockchain economy. Join the Canto community today on Discord, Twitter, or Telegram and begin contributing to the network’s future.About Canto
Canto is a Layer-1 blockchain built to deliver on the promise of DeFi – that through a post-traditional financial movement, new systems will be made accessible, transparent, decentralized, and free. Created by a loosely organized collective of chain-native builders, Canto is a new commons powered by Free Public Infrastructure.