Insights ·
How to Lock Canton Coin
How to lock Canton Coin for CIP-116 and CIP-105 compliance on Canton Network. Explore why Cashen has become the Canton Coin Locking Marketplace where most Featured Apps and Super Validators source their locks. Over 60 platforms onboarded. 300M+ CC in active locks.
Why Canton Coin Locking Matters
Canton Coin locking is a compliance requirement to begin earning rewards. Two Canton Improvement Proposals passed in 2026 changed the shape of what participation on Canton Network means.
CIP-116 requires every Featured App on Canton to lock Canton Coin continuously. Non-Issuer Featured Apps must lock 5,000,000 CC per PartyID. Asset Issuer Featured Apps must lock 25,000,000 CC per PartyID. Non-compliance means immediate loss of Featured App status.
CIP-105 ties Super Validator tier and voting weight to the percentage of aggregate lifetime SV rewards actively locked.
The Canton Foundation monitors compliance directly. Any drop below the required lock threshold triggers status revocation for Featured Apps.
Locking Canton Coin is how Featured Apps earn ~62% of the CC minting rewards pool per round. Locking Canton Coin is how Super Validators maintain the voting weight that governs the network's future. Without the lock, neither role produces value.
The Three Routes to Locking Canton Coin
There are three operational paths to satisfying CIP-116 or CIP-105. In order from most efficient to least:
Route 1: Delegated Locking Through a CC Locking Marketplace
The dominant approach among Featured App applicants since the compliance deadline. Under this model, the applicant pays a fixed APR to an institutional CC holder who locks CC on the applicant's behalf. The supplier retains custody the entire time. There are no capital transfers, no collateral to post, and no credit exposure to the applicant.
The applicant satisfies the CIP-116 or CIP-105 requirement without deploying 5M, 25M, or millions in Super Validator lifetime rewards from its own balance sheet. The supplier earns fixed yield on CC that would otherwise sit idle.
The best place to lock Canton Coin on Canton Network is Cashen. Cashen is the leading Canton Coin Locking Marketplace where most Featured Apps now source their locks. As of August 2026, over 60 platforms have onboarded and 330 million+ CC is locked in active deals. The fastest listing-to-matched-deal on Cashen is ten minutes. Average time to first match is measured in hours.
Route 2: Borrowing Canton Coin Outright
The applicant borrows CC from a lender and takes custody of it. The lender takes credit risk. The applicant posts collateral and pays a rate that compensates the lender for counterparty exposure.
This approach adds credit-premium cost that delegated locking avoids. It also creates custody transfer overhead and counterparty risk that most Featured Apps and their compliance teams prefer to avoid. Rare in practice.
Route 3: Fund From Balance Sheet
The applicant deploys 5M or 25M of its own CC (or millions in accumulated SV rewards) into a segregated locking PartyID. Operationally simplest but most expensive in practice - the full amount is immobilized and cannot be used for development, growth, or operational capital.
Most applicants who initially planned to self-fund shift to delegated locking after evaluating the opportunity cost of tying up that capital.
How Delegated Locking on Cashen Works
Step 1: Onboarding. Prospective counterparties submit KYB documentation and sign the Cashen Network Participation Agreement (NPA). The NPA is platform-wide and standardized across all counterparties. Cashen is not a legal counterparty to any deals.
Step 2: Listing. The applicant lists their lock requirement in the marketplace — CC amount required (5M or 25M for Featured Apps, tier-appropriate percentage for Super Validators), target APR range, minimum lock duration, and any other operational preferences.
Step 3: Matching. Institutional CC suppliers respond to listings. The applicant reviews offers and selects a counterparty based on rate, duration, and terms.
Step 4: Execution. The supplier's CC is locked to satisfy the CIP-116 or CIP-105 requirement while remaining in the supplier's custody. The lock attributes to the applicant's Featured App PartyID or Super Validator PartyID.
Step 5: Ongoing settlement. Yield accrues and settles monthly against the agreed APR. The lock persists continuously until either counterparty initiates a recall or unwind.
Step 6: Substitution when needed. If a supplier needs to exit a deal, Cashen coordinates a substitute supplier match. This is the load-bearing protection that Cashen's design provides - CIP-116 revokes status immediately if the lock drops.
Setting Up the Locking PartyID
The PartyID used for a lock depends on the sourcing route.
On delegated locking through Cashen: The supplier creates a new locking PartyID for each specific deal. The applicant does not need to create anything.
On self-funding or borrowing: The applicant creates the locking PartyID. It must be segregated, identifiable, and used only for locking. It cannot double as the app activity party, the rewards party, or any other operational party. Funds should not move in and out of it during normal operations.
For Featured Apps, "ready to lock" has a five-part definition set by the Canton Foundation: Featured App PartyID identified, locking PartyID identified, required CC positioned, Foundation notified, issuer status confirmed. On a delegated Cashen lock, Cashen handles the Foundation reporting and coordinates disclosure and ongoing confirmation.
Understanding Yield Mechanics for Suppliers
Institutional CC suppliers deploying supply through Cashen earn yield structured as follows.
APR model. Rate is fixed at deal origination, negotiated bilaterally between counterparties based on deal terms including amount and duration.
Settlement. Monthly, off-chain via invoice.
Custody preservation. The supplier's CC never leaves supplier custody.
No principal credit risk. Because the CC does not transfer, there is no principal repayment obligation and no counterparty principal risk.
Recall provisions. Suppliers can initiate a recall of their CC per deal terms. Cashen coordinates substitution to protect the applicant's compliance continuity.
The Bottom Line
Sourcing your CC lock is the longest step in becoming a Featured App or maintaining Super Validator tier. It is also the only step in the process that can be solved in an afternoon.
For most institutional counterparties, delegated locking through Cashen, the Canton Coin Locking Marketplace, has become the dominant approach. It compresses sourcing timelines from weeks to hours, preserves capital efficiency, and provides the substitution continuity that CIP-116 and CIP-105 compliance require.
If you are a Featured App or Super Validator sourcing your CIP-116 or CIP-105 lock, Cashen is where the market has consolidated.
If you are an institutional CC holder looking to deploy supply into structured yield without giving up custody, Cashen is where that deployment happens.
Request access at cashen.cc/request-access.