Canto

Introduction to Canto

Canto launched with a radical premise: certain DeFi primitives should be free public infrastructure rather than rent-extracting businesses. The chain provides a native DEX, lending market, and stablecoin as public goods—zero fees, no governance tokens, just free infrastructure for anyone to build upon.

Built on Cosmos SDK with full EVM compatibility, Canto attracted significant attention in 2022-2023 for its philosophical approach to DeFi infrastructure. The concept of “Free Public Infrastructure” (FPI) challenges the assumption that every DeFi component needs its own token and fee structure.

How Canto Works

Free Public Infrastructure

Core philosophy:

• Core primitives are free
• No protocol tokens for FPI
• MEV distributed to stakers
• Public goods provision

EVM on Cosmos

Technical foundation:

• Cosmos SDK with Ethermint
• Full EVM compatibility
• Solidity deployment
• Ethereum tools work

Contract Secured Revenue

Innovation:

• Smart contracts earn fees
• Network distributes revenue
• Developer incentives
• Sustainable building

Technical Specifications

Metric	Value
Consensus	Tendermint PoS
EVM	Full compatibility
Block Time	~6 seconds
FPI	DEX, Lending, Stablecoin
Token	CANTO

The CANTO Token

Utility

CANTO serves multiple purposes:

• Gas Fees: Transaction costs
• Staking: Network security
• Governance: Protocol decisions
• CSR Claims: Revenue sharing

Tokenomics

Distribution approach:

• No pre-mine
• No VC allocation
• Liquidity mining
• Fair launch ethos

Staking

Participation:

• Delegated proof of stake
• Earn MEV distribution
• Network security
• Governance weight

Free Public Infrastructure

The DEX

Canto DEX:

• Zero trading fees
• Constant product AMM
• Base layer liquidity
• No governance token

The Lending Market

Canto Lending Market:

• Supply and borrow
• Interest rate curves
• No protocol fee
• Compound-style

NOTE Stablecoin

Unit of account:

• Over-collateralized
• CDP mechanism
• Native stablecoin
• Ecosystem standard

Contract Secured Revenue

How CSR Works

Developer incentives:

• Deployed contracts generate fees
• Fees go to contract deployers
• Sustainable development
• Alignment creation

Why It Matters

Economic innovation:

• Developers earn from usage
• No token needed
• Sustainable building
• Public goods funded

The Philosophy

Against Rent-Seeking

Core belief:

• DeFi primitives are utilities
• Shouldn’t extract rent
• Public infrastructure model
• Community benefit

Fair Launch

Distribution approach:

• No insiders
• No pre-mine
• Community-first
• Decentralization from start

Pseudonymous Team

Anonymous contributors:

• No known founders
• Community-driven
• Decentralized development
• Philosophical commitment

Ecosystem Evolution

Initial Excitement

2022-2023:

• Strong launch
• Developer interest
• TVL growth
• Community enthusiasm

Current State

Evolved position:

• Smaller ecosystem
• Continued operation
• Dedicated community
• Niche positioning

Competition and Positioning

vs. Other EVM Chains

Chain	DeFi Model	Fees
Canto	Free public infrastructure	FPI zero
Ethereum	Protocol tokens	Yes
Arbitrum	Protocol tokens	Yes

Canto Differentiation

Unique position:

• Free primitive layer
• CSR incentives
• Philosophical commitment
• Fair launch

Challenges and Criticism

Sustainability

Long-term questions:

• How fund development long-term?
• Free infrastructure costs
• Competition for attention
• Economic sustainability

Adoption

Growth challenges:

• Many L1 alternatives
• Network effects elsewhere
• Developer attraction
• User acquisition

Philosophy vs. Practice

Implementation:

• Ideals vs. reality
• Ecosystem building difficult
• Competition fierce
• Attention limited

Recent Developments

Cyclone Stack

Technical evolution:

• L2 development
• Architecture updates
• Protocol improvements
• Future direction

Community Updates

Ecosystem progress:

• Development activity
• Partnership announcements
• Feature updates
• Community engagement

Future Outlook

Evolution Path

Potential directions:

• L2 expansion
• Ecosystem focus
• Niche positioning
• Philosophy preservation

Development Focus

Priorities:

• Technical improvements
• Developer support
• Community maintenance
• Sustainable operation

Conclusion

Canto represents an ideologically committed experiment in DeFi infrastructure design. The “Free Public Infrastructure” concept challenges assumptions that every DeFi component needs tokenized rent extraction, offering a coherent alternative vision.

Whether this model proves sustainable—funding ongoing development without traditional monetization—remains an open question. The philosophical coherence is admirable, but blockchain ecosystems need resources, developers, and users that fee-generating protocols can more easily fund.

For those interested in alternative DeFi economic models and philosophical experiments in crypto, Canto provides a thought-provoking case study—though practical considerations of ecosystem size and development sustainability apply.