> ## Documentation Index
> Fetch the complete documentation index at: https://cantonfoundation-feature-integrate-google-analytics.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Canton Coin and the Global Synchronizer

> Understanding Canton Coin's role in the network economy

Canton Coin (CC) is the native utility token of the Global Synchronizer, providing the economic foundation for network operations.

## What is Canton Coin?

Canton Coin is the native token used to:

| Use                            | Description                                        |
| ------------------------------ | -------------------------------------------------- |
| **Transaction fees (Traffic)** | Pay for network usage when submitting transactions |
| **Validator rewards**          | Incentivize infrastructure operators               |
| **Governance**                 | Super Validators stake CC to participate           |

Canton Coin is implemented via [Splice](https://github.com/canton-network/splice), the open-source infrastructure for decentralized Canton synchronizers.

## Traffic: Transaction Fees

"Traffic" is Canton's term for transaction fees. To transact on the Global Synchronizer, you need traffic credits in your validator's traffic budget.

**The two-step process:**

1. **Top up**: Convert Canton Coin to traffic credits, which are added to the validator's traffic budget
2. **Consume**: When transactions are submitted, traffic credits are deducted from the budget

Traffic credits are non-transferable—once CC is converted to traffic, it can only be used to pay for transaction fees.

### How Traffic Works

```mermaid theme={"theme":{"light":"github-light","dark":"github-dark"}}
flowchart TB
    subgraph TopUp[1. Top Up Traffic]
        CC[Canton Coin] --> CONVERT[Convert to Traffic]
        CONVERT --> BUDGET[Validator Traffic Budget]
    end

    subgraph Transaction[2. Submit Transaction]
        TX[Transaction] --> SIZE[Calculate Size]
        SIZE --> DEDUCT[Deduct from Budget]
        DEDUCT --> COMMIT[Transaction Commits]
    end

    BUDGET -.-> DEDUCT
```

Traffic costs depend on:

| Factor                       | Impact                            |
| ---------------------------- | --------------------------------- |
| **Transaction size**         | Larger transactions cost more     |
| **Computational complexity** | More complex operations cost more |
| **Network demand**           | May vary with network load        |

### Traffic Management

To ensure your transactions can be processed:

1. **Maintain traffic credits** in your validator's traffic budget
2. **Top up** by converting CC to traffic credits when the budget gets low
3. **Monitor usage** to plan for costs

<Note>
  If your validator's traffic budget is exhausted, transactions will fail. Validators can configure auto-top-up to automatically convert CC to traffic credits when the balance falls below a threshold.
</Note>

## Obtaining Canton Coin

How you obtain CC depends on the environment:

| Environment  | Method                                    |
| ------------ | ----------------------------------------- |
| **LocalNet** | Automatically available (test CC)         |
| **DevNet**   | Faucet ("tapping") provides test CC       |
| **TestNet**  | Faucet provides test CC                   |
| **MainNet**  | Purchase or earn through network activity |

### DevNet/TestNet Faucet

On test networks, you can "tap" for free test CC:

1. Access your wallet interface
2. Use the tap/faucet functionality
3. Receive test CC (no real value)

Test CC is rate-limited and has no economic value.

### MainNet Acquisition

On MainNet, CC has real economic value:

| Method               | Description                       |
| -------------------- | --------------------------------- |
| **Exchanges**        | Purchase from supported exchanges |
| **Network activity** | Earn through validator operations |
| **Direct transfer**  | Receive from other parties        |

## Validator Rewards

Validators operating on the Global Synchronizer can earn CC through:

| Reward Type             | Description                       |
| ----------------------- | --------------------------------- |
| **Liveness rewards**    | For maintaining node availability |
| **Transaction rewards** | Share of traffic fees             |

Super Validators have additional reward mechanisms for operating synchronizer infrastructure.

## Tokenomics

The Global Synchronizer's tokenomics are designed to:

| Goal                                | Mechanism                   |
| ----------------------------------- | --------------------------- |
| **Sustain infrastructure**          | Rewards for operators       |
| **Ensure fair pricing**             | Market-driven traffic costs |
| **Facilitate governance alignment** | Stake-based participation   |
| **Foster network growth**           | Incentives for adoption     |

For detailed tokenomics, see [canton.foundation](https://canton.foundation).

## Canton Coin vs. Other Cryptocurrencies

| Aspect               | Canton Coin              | Other L1 Tokens |
| -------------------- | ------------------------ | --------------- |
| **Primary use**      | Network utility          | Varies          |
| **Privacy**          | Balances private         | Often public    |
| **Holders visible**  | Only to entitled parties | Public          |
| **Transaction fees** | Pay for traffic          | Pay for gas     |

### Privacy of Holdings

Unlike most cryptocurrencies where balances are publicly visible:

* Your CC balance is visible only to you and entitled parties
* Transfer details are private between sender and receiver
* No public rich list or balance queries

## Integration Considerations

### For Application Developers

| Consideration          | Approach                                  |
| ---------------------- | ----------------------------------------- |
| **Traffic estimation** | Estimate costs for user operations        |
| **Top-up flows**       | Build automatic or user-triggered top-ups |
| **Error handling**     | Handle insufficient balance gracefully    |
| **User communication** | Inform users about traffic costs          |

### For Validators

| Consideration                 | Approach                                                       |
| ----------------------------- | -------------------------------------------------------------- |
| **Traffic budget monitoring** | Track traffic credits balance for your hosted parties          |
| **Auto-top-up**               | Configure automatic CC → traffic conversion when budget is low |
| **Reward management**         | Handle earned CC rewards                                       |

## Next Steps

<CardGroup cols={2}>
  <Card title="Wallets for Users" icon="wallet" href="/integrations/wallets/for-users">
    Manage your Canton Coin.
  </Card>

  <Card title="Validator Operations" icon="server" href="/global-synchronizer/understand/introduction">
    Operate and earn rewards.
  </Card>
</CardGroup>