Canton Network holders should take note. The CIP-0120 update brings fundamental changes that will make the ecosystem significantly fairer and truly decentralized.
Here is a quick breakdown of the update.
Old System: Validator rewards were calculated based on the amount of coins burned. The tokenomics were inaccurate because the validator triggering the burn was not always the one processing the transaction.
CIP-0120 Solution: Rewards will now be calculated based on actual traffic from successful transactions. This makes the system much more transparent and strictly based on real work.
70/30 Split: The distribution is set at 70% for Submitting Validators (handling API and submissions) and 30% for Confirming Validators. This creates a strong economic incentive for validators to increase confirmation points via multi-hosting, naturally making the network more fault-tolerant.
However, I do have one personal concern regarding the new anti-spam mechanism.
Under this proposal, failed or rejected transactions will receive zero rewards. It sounds logical for preventing spam, but in practice, it misses the mark. Validators still consume computing power and bandwidth just to process and reject those invalid transactions.
If there is absolutely zero minimum compensation, validators could easily bleed operational costs when trying to mitigate a massive spam attack. This policy could actually become a double-edged sword for the network's overall sustainability and security.
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