The launch of Contract Secured Revenue (CSR) is live on Canto.
This marks a monumental milestone for the network. Why? Because CSR is Canto’s novel, fee-splitting mechanism that will bring a whole host of new use cases, benefits, and incentives for builders and the community alike.
But what is CSR and how does it work?
Here are 4 quick facts to help anyone (and yes, we mean anyone) understand CSR.
CSR is the fee-splitting mechanism for the Canto Network.
Users who interact with a smart contract on Canto pay fees to the network. CSR enables developers to claim a percentage of these transaction fees when users interact with their smart contract(s).
So, more interaction with the developer’s smart contract means revenue for their project.
The way CSR works is simple.
Developers register their smart contracts with CSR, and in return, they receive an NFT. When users engage with their smart contracts, revenue automatically accrues to the NFT. Developers can then use their CSR NFT to withdraw the funds that have accumulated from users utilizing their smart contract(s). It is important to call out that CSR can accrue from multiple contracts.
So now that you understand how CSR works, you might be wondering what the use cases are. Let’s take a look.
The CSR NFT is composable, allowing it to be incorporated and used by a complementary protocol. Some ways the NFT could be used include:
Collateralizing for loans
The use cases are infinite. For more on ways it can be used, check out the Canto Public blog.
Canto’s CSR aims to fulfill the vision of DeFi by fostering a shared blockchain economy for developers.
Establishing a shared economy creates a new path for developers to earn from their work without having to rely on:
extracting protocol fees from users
or other rent-seeking behaviors
…all while providing meaningful use cases to further incentivize builders.
After months of development work and battle-testing, CSR has been enabled on Canto. If you are a team looking for more information on CSR, check out the documentation.
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.
Canto Cares is a loosely organized group of community members dedicated to sharing helpful resources and information with the Canto Community.