Yuval Rooz of Canton’s backer Digital Asset says smart contract networks face a value gap between hype and real economics. He notes most platforms lack enough on-chain activity or revenue to justify multi-billion valuations, and that stablecoins still lack true product-market fit. Canton’s design aims to tether value to usage by burning tokens on every transaction and distributing new supply to fee-generating applications.
Unlike traditional models that reward validators irrespective of real user activity, Canton uses a mint curve that allocates new tokens to builders and users who generate revenue, aligning incentives with network growth. Rooz says the system rewards performance: attracting customers, generating fees, and fostering real economic activity. The model mirrors approaches like HyperLiquid, where revenue supports token buybacks to bolster token holders’ incentives, demonstrating how value can flow to participants.
Rooz rejects the view that Bitcoin alone is sufficient as a platform; he argues BTC is an asset class, not a programmable platform for finance. Canton’s burn-based mechanism aims to shrink circulating supply as USD-based usage grows, with no priority or frontrunning fees. The project emphasizes a broader shift toward infrastructure designed for private, compliant, and interoperable workflows suited for global institutions.
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