CANAL

THE LIQUIDITY LAYER FOR STOCKS ONCHAIN
EVERY STOCK IS AN ISLAND. CANAL CONNECTS THEM.
PAID DAILY. DUG DAILY.

CANAL Whitepaper v2.6 · September 2026 · canal.market · Robinhood Chain

v2.6 · Launch and Operating Status Update
This update corrects launch-reserve assumptions and clarifies construction funding and module status.

This document does not constitute an investment solicitation or investment advice. CANAL does not represent equity in or a debt claim against any company. Under the published reward rules, a portion of trading fees is allocated to CANAL holders (THE CREW): Home Port rewards are paid in SNDK in proportion to CANAL holdings, while rewards from other Stock Ports are paid to the Top 1,000 CANAL holders in each Port's corresponding stock token. See the Crew rewards section for specific eligibility and distribution rules. Rewards depend on actual trading activity, fee revenue, and the applicable distribution conditions, and do not constitute a promise of fixed or minimum returns. The protocol does not provide legal advice; participants should assess the relevant risks independently. The frontend applies geographic restrictions and self-declarations and does not provide services to U.S. persons or restricted regions. Stock Tokens are issued by Robinhood Assets (Jersey) Limited as tokenized debt securities and are not equivalent to directly holding shares in the corresponding companies. This document describes CANAL's mechanisms, design, and implementation constraints. Deployed features, contract addresses, and operating status should be verified against public announcements and onchain records. Planned features should not be treated as already implemented, and illustrative figures do not represent actual or expected returns. CANAL is an experiment in onchain stock liquidity and remains subject to smart contract security, market volatility, liquidity, and execution risks. See §0 "Implementation Status" for implementation details and outstanding items.

Three lines first

Every stock is an island. We dig the canal.
Paid daily. Dug daily.
Every trade pays the crew. Every trade digs the canal.

If you understand these three lines, you understand CANAL. Everything below explains why it holds up and how well it survives scrutiny.

Abstract

Bringing tokenized stocks onchain does not, by itself, create liquidity. Stock assets spread across separate trading pools resemble islands: trading routes can connect them, but lasting, usable liquidity still needs to be built.

CANAL is a canal—and an onchain experiment in liquidity for tokenized stocks. It uses CANAL as the connecting asset to establish liquidity pools with different stock tokens, with each Port's LP permanently locked. Each pool is a Port. The Home Port is CANAL / SNDK; other Stock Ports connect CANAL with other stock tokens.

Buying and holding CANAL makes you part of THE CREW. No additional action or staking is required. Crew rewards come from two separate fee streams, each with different reward assets, eligibility requirements, and distribution schedules.

The first stream comes from the Home Port. Each CANAL / SNDK trade incurs a total fee of 3% of trading volume: 0.3% goes to Pons and 2.7% goes toward CANAL holder rewards. These rewards are available to all CANAL holders, calculated in proportion to their CANAL holdings, and paid in SNDK. The contract typically processes distributions approximately once per hour, rather than strictly every 60 minutes. A wallet's calculated reward must reach 0.001 SNDK in a given round to be paid. Rewards below this threshold are not paid, accumulated, or carried forward to the next round.

The second stream comes from other Stock Ports. These Ports allocate part of their LP trading fees to rewards for the Top 1,000 CANAL holders, paid directly in the corresponding Port's stock token: NVDA from the NVDA Port, TSLA from the TSLA Port, and AAPL from the AAPL Port. Each hour, one Port takes its turn distributing its stock rewards, followed by the next Port in the next hour. Once all Ports have taken a turn, the cycle restarts and continues around the clock.

LP fees from non-Home Ports follow two allocation stages: before the 100th non-Home Port opens, 50% goes toward building Ports, 30% toward Crew rewards, and 20% to Builders/the team. From the opening of the 100th non-Home Port onward, the building allocation falls to 30%, Crew rewards rise to 50%, and the team allocation remains at 20%. This change applies only to non-Home Port LP fees and does not alter the Home Port reward rules.

Ports generate fees, and fees support rewards and further Port construction. Funding for new Ports comes from two sources: the portion of non-Home Stock Port LP trading fees allocated to construction, and SNDK holder rewards earned by permanently locked CANAL. These funds are used to buy back CANAL and acquire stock tokens, providing liquidity on both sides of new Ports.

As more Ports open, CANAL connects more stock assets and adds more potential stock reward streams for the Crew. The experiment explores whether trading and arbitrage fees can continuously support holder rewards and permanently locked stock liquidity. Actual rewards depend on trading activity, fee revenue, and the applicable distribution conditions; they are not a promise of fixed returns.

Connect stocks. Keep building Ports. Let fees support the growth of the canal.

0. Implementation status: what is onchain, what is not

This section comes first because it decides how to read the ten that follow. This paper is a specification. A rule in it becomes a rule in force only once the matching contract is deployed, its address published, and an audit report exists to check it against, line by line. As of this version:

Home Port rewards are handled by the Pons protocol, while Crew rewards from other Stock Ports are distributed by the CANAL project. The operator and operating status of each stream should be disclosed separately. Contract deployment, address publication and audit completion are distinct statuses; an incomplete audit does not by itself mean that rewards are not operating.

Non-Home Stock Port rewards rotate automatically through one Port per hour and cover the Top 1000 CANAL holders. The stock rewards dashboard is coming soon.

The deployed CANAL token contract, on its own, does not prove that the reserve, LP custody, settlement and permanent-lock constraints are deployed as described in the old design. Each of those needs its own address plus an audit report that can be checked against this specification, line by line. The commitment here is simple: the moment those addresses and that report exist, this section carries clickable links to them and every "unverified" or "disclosed separately" row above is replaced by an address. Until then this paper does not claim they are in force, and the site does not claim to be audited.

So when you read §3 (where the money goes), §5 (Crew rewards) and §6 (who can touch the money), hold on to this: keep the published reward rules separate from the implementation details still awaiting verification. The illustrative figures in this paper do not represent actual or expected returns.

1. Stocks are onchain. Now what?

1.1 Stock Tokens arrived. The water didn't.

Robinhood Chain is an L2 built for tokenized stocks. Robinhood Stock Tokens are 18-decimal ERC-20 tokenized debt securities issued by Robinhood Assets (Jersey) Limited. They give the holder economic exposure to the corresponding stock or ETF, not legal or beneficial ownership of the underlying security. Every Stock Token has its own Chainlink onchain price feed; corporate actions such as splits are reflected through an onchain multiplier (uiMultiplier), which the feed already incorporates. This infrastructure makes "trading NVDA price exposure onchain" real.

But a price and depth are two different things. Each Stock Token's secondary market is its own pool, and most are shallow; to go from NVDA to TSLA you usually swim back to a stablecoin and across again — two slippages, two fees. Direct pools are not absent; they are not deep enough. The issuer mints and redeems; it does not provide secondary-market depth. The result: a hundred-odd islands, each with its own small patch of water. The roads exist. The water is fragmented.

1.2 The two answers on the market today

The first is the hub token with "protocol-owned liquidity": a meme token paired with each stock in a pool, fees paid out to holders. That road proved two things — people do want a canal, and they do want money in their pocket every day. But it has two structural weaknesses: the LP sits in the team's wallet, so whether it stays locked is a matter of trust; and all revenue is paid out, so every dollar distributed is a dollar that never became water — the canal stops halfway.

The second is the general-purpose DEX aggregator. It finds routes; it does not put water in them.

CANAL keeps what the first answer got right and fixes what it got wrong: the LP is locked in a contract nobody can drain. CANAL separates Home Port fees from other Stock Port fees. Pons handles Home Port rewards, while other Stock Port LP fees fund port building, Crew rewards and Builders.

2. We dug a canal

2.1 A canal, not a pool

CANAL is a hub token that connects different stock assets through CANAL / stock token liquidity pools; each pool is called a Port. The pools, LP positions and lock records of the open Ports should correspond item by item. Whether principal can be withdrawn, and whether administrative or upgrade authority exists, must be judged from the actual custody and lock contracts — it cannot be inferred from the CanalVault name used in the old design.

Ports connect to each other: between any two ports already joined to the canal there is a two-hop path through CANAL. But we do not force you through the canal — the router compares three routes, direct, stablecoin, and CANAL, and takes the best one. ANY PORT ↔ ANY PORT. BEST PATH WINS. The canal has exactly one job: dig its own water deep enough that the router picks it on its own.

2.2 Brand hierarchy: say these three things first

Supply splits, settlement formulas and contract names are "why it works". At first glance you only need the first three lines; the chapters that follow are for people who came to poke holes.

2.3 Straight talk

CANAL is not a burn token: the protocol burns no CANAL. CANAL does not use holder voting to decide new Ports; the candidate ordering and construction progress are on the Ports page, and an actual opening depends on funding conditions and execution records. Nor is it an equity claim on any stock — the SNDK or Port stock tokens you receive are fee rewards distributed under the protocol's rules, not any company's dividend. Hold CANAL to participate in Crew rewards. The Home Port and other Stock Ports distribute rewards separately. The Crew allocation of non-Home Port LP fees rises from 30% to 50% from the 100th non-Home Port. Holding it is holding exposure to that machine — and how fast the machine turns depends on how many ships are on the canal. Buy and hold CANAL, and you're crew.

3. How the canal runs

3.1 Launch and the home port (HOME PORT)

CANAL has launched on Pons v2 and graduated. The Home Port pair is CANAL / SNDK, quoted in the SNDK stock token. CANAL is therefore denominated in a stock from day one, and the Home Port is itself a stock port.

The actual initial purchase and graduation follow the onchain transactions. The earlier bootstrap model — "a single transaction buying 35% of total supply into PortReserve" — is not treated as this project's actual launch record.

The Home Port is CANAL / SNDK. Each trade carries a total fee of 3% of trading volume: 0.3% goes to Pons and 2.7% funds CANAL holder rewards. Rewards are calculated using CANAL holding weights among participants in that distribution round and paid in SNDK through Pons' automated contract mechanism, typically about once an hour rather than on a strict 60-minute schedule. The minimum payout per round is 0.001 SNDK. A calculated reward below this threshold is not paid in that round and does not accumulate or carry forward.

3.2 Open Ports and further expansion

A Port is a liquidity pool of CANAL and one stock token; each Port's fee tier follows the actual parameters of that pool. Creation and LP lock status of existing Ports follow onchain records.

Genesis refers to the initial set of Stock Ports. The Ports already open are those listed on the Ports page, together with their pool-creation records. For the initial Ports, the CANAL side and the stock token side should each be documented per Port: funding source, amount contributed, the pool-creation transaction and the LP lock record.

Expansion continues through eligible, unopened Ports in the THE HUNDRED queue, built along the path described in §3.5. The earlier account — "seven Ports opened at once in the first trading window after graduation, with the CANAL side from the 35% reserve and the stock side from a pre-launch treasury" — is not treated as evidence of how the initial Ports were actually funded.

3.3 Port candidates and construction progress: THE HUNDRED

Candidates for new Stock Ports are ranked by market cap and assessed together with stock token availability, transferability and liquidity conditions. The current candidates, the open Ports and the next construction target are on the Ports page; this paper does not hardcode a "yesterday" or "next" ticker.

New Port construction uses assets available through the construction funding path. Current construction progress is shown on the Ports page, and actual openings follow the applicable execution process and onchain records.

The original design proposed at most one new Port per day, execution inside a suitable trading window, and limits on oracle freshness, price deviation and external depth. Whether the current contracts or programs enforce these must be verified against the public implementation; anything unverified remains labelled a design requirement.

NON-HOME PORT LP FEE ALLOCATION
Before Port #100: Build 50% · Crew rewards 30% · Builders 20%
From Port #100: Build 30% · Crew rewards 50% · Builders 20%
The Home Port is excluded from this count. This change does not alter the Home Port fee allocation.

3.4 Where the money goes

The Home Port is CANAL / SNDK. Each trade carries a total fee of 3% of trading volume: 0.3% goes to Pons and 2.7% funds CANAL holder rewards. Rewards are calculated using CANAL holding weights among participants in that distribution round and paid in SNDK through Pons' automated contract mechanism, typically about once an hour rather than on a strict 60-minute schedule. The minimum payout per round is 0.001 SNDK. A calculated reward below this threshold is not paid in that round and does not accumulate or carry forward.

The Home Port's 3% fee comprises a 1% base trading fee and a 2% creator tax. Pons receives 30% of the base trading fee.

Non-Home Stock Ports are CANAL / Stock Token pools, excluding SNDK. Before the 100th non-Home Port opens, LP fee revenue is allocated 50% to building, 30% to Crew rewards and 20% to Builders. From the 100th port, the split becomes 30%, 50% and 20%, respectively. These percentages apply to LP fee revenue, not trading volume. Stock rewards are paid directly in each port's stock token: NVDA from the NVDA Port, TSLA from the TSLA Port and AAPL from the AAPL Port. They are not all converted into SNDK. Automated distribution rotates through one Port per hour, moves to the next Port in the following hour, and repeats after all Ports have had a turn, running around the clock. Rewards cover the Top 1000 CANAL holders.

These percentages apply to non-Home Port LP fee revenue, not to trading volume; the Home Port does not use this split. Port #100 and the Top 1000 holders are two different concepts.

Other Stock Port rewards are paid directly in the corresponding stock token: NVDA from the NVDA Port, TSLA from the TSLA Port and AAPL from the AAPL Port. These stock rewards are not all converted into SNDK.

3.5 BALANCED DEPTH: where the construction money comes from and goes

New ports are funded by the building allocation of LP fees from existing non-Home Stock Ports, together with SNDK holder rewards earned by permanently locked CANAL. The locked position first earns SNDK under the Home Port holder reward rules, and those rewards are then used for building. This is not a separate building deduction from Home Port fees.

BALANCED DEPTH describes how available construction assets are allocated between the stock-token side and the CANAL side. Construction uses the assets actually available for deployment, while assets that cannot yet be deployed remain in construction inventory until they can be used through the applicable execution process.

The earlier R definition based on the old Home Port construction share, the two-day dollar example and the dependency table are withheld until they are recalculated from the funding sources above. The available construction budget, the valuation method and the algorithm actually executed must be verified against the current implementation.

Why not spend the whole construction budget on CANAL? Because CANAL would pile up in the warehouse — bought back but never built out. Buying only CANAL is the logic of a price-support tool; we want ports. Every construction dollar should go onto the port-building path.

3.6 Construction inventory and bought-back CANAL

Construction inventory comprises CANAL and stock tokens prepared for Port LP. Custody addresses and contract restrictions are listed under §0 Implementation Status.

Transfer restrictions on assets bought back for construction must be verified against the actual contracts; the sole-exit claim cannot be inferred from the old design names RevenueVault, CanalInventory or CanalVault.

Actual inventory constraint: use only received, deployable assets allocated to construction. If either side is insufficient, wait. No assumed reserve or holder rewards payable may cover the shortfall.

This version does not treat the old bootstrap model's 35% PortReserve as an automatic backstop for new Port construction.

3.7 The flywheel

FLOW → FEES → CREW PAID → PORT DUG → MORE FLOW

More ships, more fees; more fees, more for the crew and deeper ports; deeper ports, and bigger ships dare to come. Every trade pays the crew. Every trade digs the canal. Buy and hold CANAL, and you're crew. More non-Home Stock Ports can create additional sources of LP fee revenue. From the 100th non-Home Port, the Crew allocation rises from 30% to 50%. Home Port fee allocation is unchanged by this transition.

4. Tokenomics

4.1 Supply and holdings disclosure

CANAL's total supply and its transfer history follow the token contract and onchain transactions. This version does not describe the actual launch allocation as "35% protocol reserve / 65% market".

CANAL has launched. CANAL for Port construction comes from construction-funded buybacks and the construction allocation of CANAL earned in non-Home Port LP fees.

Supply distribution follows onchain records. CANAL balances in liquidity pools change with trading and do not represent fixed launch allocations. Current holdings should be reported separately for ordinary addresses, CANAL inside the Home Port and other Stock Port pools, permanently locked CANAL, and assets pending Port construction; a pool's current share of holdings cannot be read as an initial allocation ratio.

The team has no token allocation. Historical launch allocations, team-related addresses and how they acquired tokens should match the corresponding onchain records. Buying and holding CANAL makes you Crew; eligibility details are in §5.

4.2 What "locked" means, and what it doesn't

Several constraints must be kept apart, and the home page and this paper both use this wording:

• Permanently locked LP: the right to withdraw principal from that liquidity position is subject to an irrevocable restriction. It does not mean the amount of CANAL in the pool, or the dollar value of the liquidity, is fixed. Whether a position meets this condition must be verified against its actual lock contract.
• Permanently locked CANAL: a CANAL token position that is locked permanently. SNDK holder rewards earned by that position are used to buy back CANAL and support new Port construction, see §3.5. It is not the same concept as CANAL inside pools, as LP locking, or as the old design's 35% reserve.
• Assets pending Port construction: assets already on the construction funding path but not yet placed into LP. They cannot be counted as permanent liquidity while unlocked.
• Construction inventory: CANAL and stock tokens prepared for future Port LP.

CANAL COMMITTED: the share of total CANAL supply verifiably locked or subject to use restrictions at a stated observation time. It does not mean tokens have left circulation and is not guaranteed to rise; pool balances change with trading. Permanent LP, separately locked CANAL, and construction inventory are shown separately.

Permanent locks, fixed-term locks and use commitments should each be disclosed separately; zero team allocation does not mean the project has no other type of lock.

4.3 How the builders get paid

Zero team allocation. Builders earn their pay. The team has no token allocation. Builders receive 20% of LP fee revenue from non-Home Stock Ports, with this percentage unchanged across the Port #100 threshold. Home Port fees are allocated as 0.3% of trading volume to Pons and 2.7% to CANAL holder rewards. The CANAL side of port fees means the team will come to hold some CANAL as the canal grows — earned, not allocated, and the amount is onchain. The team's authority over principal, vaults and roles is covered in §6.1.

5. Crew rewards: what you get, what to watch (Holder Economics)

Buy and hold CANAL to join the Crew. No extra action or staking is required. Rewards come from two separate fee streams: holder rewards from the CANAL / SNDK Home Port, and stock-token rewards from other CANAL / Stock Token ports. Home Port rewards are for CANAL holders. Other Stock Port rewards are available to the Top 1000 CANAL holders.

The Home Port is CANAL / SNDK. Each trade carries a total fee of 3% of trading volume: 0.3% goes to Pons and 2.7% funds CANAL holder rewards. Rewards are calculated using CANAL holding weights among participants in that distribution round and paid in SNDK through Pons' automated contract mechanism, typically about once an hour rather than on a strict 60-minute schedule. The minimum payout per round is 0.001 SNDK. A calculated reward below this threshold is not paid in that round and does not accumulate or carry forward.

Non-Home Stock Ports are CANAL / Stock Token pools, excluding SNDK. Before the 100th non-Home Port opens, LP fee revenue is allocated 50% to building, 30% to Crew rewards and 20% to Builders. From the 100th port, the split becomes 30%, 50% and 20%, respectively. These percentages apply to LP fee revenue, not trading volume. Stock rewards are paid directly in each port's stock token: NVDA from the NVDA Port, TSLA from the TSLA Port and AAPL from the AAPL Port. They are not all converted into SNDK. Automated distribution rotates through one Port per hour, moves to the next Port in the following hour, and repeats after all Ports have had a turn, running around the clock. Rewards cover the Top 1000 CANAL holders.

Reward amounts vary with fee revenue and are not a promise of fixed returns. The Home Port and other Stock Ports use different eligibility, allocation and payout mechanisms. Holding CANAL does not automatically qualify an address for every reward stream. Actual payouts also depend on the relevant distribution process and thresholds.

If a wallet holds x% of the CANAL participating in a round with y SNDK allocated to holder rewards, its calculated reward is x% × y SNDK. A result of at least 0.001 SNDK is paid in that round; a lower result is not paid and does not carry forward.

The Stock Port rotation means one Port per hour, not every Port paying every hour. Running 24 hours a day does not mean a full cycle always completes within 24 hours. A stock rewards dashboard is coming soon.

The following metrics can each be reviewed separately:

CANAL buybacks for Port construction. Report the construction buyback transactions that actually occurred and state the funding source behind each. The buyback amount is not the same as the amount of LP already established and locked.

CANAL COMMITTED. Report the identified construction-related CANAL holdings. The page should state the scope included, the addresses, the observation time and the calculation method, distinguishing CANAL inside pools, permanently locked CANAL and assets pending construction to avoid double counting. The metric does not use 35% as a fixed base and is not equivalent to leaving circulation or to being permanently locked.

PERMANENT LIQUIDITY. Two numbers need separating. LIVE PERMANENT LIQUIDITY is the real-time dollar value of the permanent LP today — "permanent" means the principal cannot be withdrawn, not that the dollar value only rises; when stocks and CANAL fall, it falls, even though not a cent of LP has left. CUMULATIVE CAPITAL DEPLOYED is the total capital ever deployed, valued at the time each port was built — that number only goes up. The home page shows the former; both count only ports that have opened, and a port that is under construction but not yet open is shown separately.

Honest words, before someone else says them for us. First, rewards come from trading fee revenue, and revenue fluctuates; on a day with no trading there is no distribution. Second, the Home Port and other Stock Ports use different eligibility, allocation and payout mechanisms; holding CANAL does not automatically qualify an address for every reward stream, and actual payouts also depend on the relevant distribution process and thresholds. Third, from the 100th non-Home Port, the construction allocation of non-Home Port LP fees falls from 50% to 30% while Crew rewards rise from 30% to 50%, which affects the pace of construction accordingly; Home Port fee allocation is unchanged by this transition. Fourth, port LP provides trading liquidity but does not guarantee price stability for CANAL, nor does it guarantee lower volatility.

6. Who can touch the money? (Security & Trust)

6.1 Principal and administrative authority

Whether principal can be withdrawn must be verified contract by contract: the custody of Home Port and other Port LP, permanently locked CANAL, and assets pending Port construction. Withdrawal paths, owner / admin roles, proxy upgrades, pause capability and whether locks can be released all need to be disclosed.

The old design's REGISTRAR, WINDOW_POSTER and RANKING_POSTER are not evidence that the current system has only three governance surfaces; actual roles and authority follow the deployment records.

Home Port rewards are handled by the Pons protocol, while Crew rewards from other Stock Ports are distributed by the CANAL project. The operator and operating status of each stream should be disclosed separately. Contract deployment, address publication and audit completion are distinct statuses; an incomplete audit does not by itself mean that rewards are not operating.

CANAL held by the crew stays in their own wallets; it never needs to be moved into protocol custody.

Anything not yet verified is not described as "nobody can withdraw", "no administrator" or "not upgradeable". Contract addresses and third-party audit reports are covered in §0 and §6.5.

6.2 Invariants: written into the contracts, and into the tests

The protocol specification defines the full set of invariants and the test plan maps each one to a test; the complete implementation must pass unit / fuzz / invariant / fork tests before it is deployed. Today these invariants live only in the specification and the test plan: neither the implementation nor the test reports are public, so none of the lines below carries evidence a third party can review. The core ones:

• SPLIT-1: for non-Home Port LP fees, building + Crew rewards + Builders == the LP fee revenue received by that Port, in the ratios of the deployed constants for the current stage. This does not apply to the Home Port.
• SPLIT-2: the non-Home Port stage is decided only by the onchain non-Home Port count and flips from stage one to stage two exactly once, never back; each allocation's stage is locked when it begins and cannot change afterwards; no role can set it.
• CREW-1 (Home Port): Home Port holder rewards are calculated from CANAL holding weights among participants in that round, paid in SNDK, and subject to the 0.001 SNDK minimum payout; the operator is Pons' contract mechanism.
• CREW-2: the crew does not need to move CANAL into protocol custody to participate.
• CREW-3 (non-Home Port): non-Home Port stock rewards cover the Top 1000 CANAL holders, rotate through one Port per hour, and are paid directly in each Port's stock token.
• Buyback asset constraints: publish the actual transfer paths and use restrictions, and verify whether any exit exists other than Port construction.
• Construction algorithm: the former BAL-1 depended on the old Home Port construction revenue variable and is not treated as a formula currently in force; the actual algorithm must be described from the current funding inputs.
• Reserve backstop: the old unverified reserve model is not treated as an automatic source for topping up Port construction assets.
• LP locking: verify the right to withdraw principal position by position; a monotonically rising dollar value is not evidence of a lock.
• Port opening and settlement: the daily cap, expiry finalization and inventory carry-over must correspond to the programs actually executed and their test results.
• Authority: publish the actual administrative roles, upgrade and withdrawal capabilities; do not carry over the old paper's "three governance surfaces" conclusion.

6.3 Oracles and time

The original design used Chainlink stock prices and Home Port price observations for valuation, with trading-window, price-freshness and price-deviation limits. The price sources, CANAL valuation method, data timestamps, trigger conditions and failure handling actually used today for construction and asset conversion should be disclosed per execution module.

Parameters such as "26 hours", "3% deviation" and the Home Port TWAP are listed as limits in force only after they have been verified against the current implementation. A stale price source, or one that deviates from the market price, affects valuation and trade execution; a design description alone cannot guarantee that nothing executes at a wrong price.

6.4 Checks before protocol module deployment and activation

New or upgraded construction, inventory, and settlement modules must pass configuration, permission, fund-segregation, and applicable test checks before activation. Deployment addresses and check results are disclosed per module.

Modules already live should add records of the launch parameters, price sources, asset transferability, external depth and safety checks matching the current version. Any later module addition or change should complete the corresponding verification before deployment.

The "thirty-plus automated Gate items, blocking on failure" script described in the earlier paper, and its execution records, have not been published, and are not presented as verified safeguards in place today.

The reward streams are verified separately: Home Port rewards verify the Pons integration, including holding-weight calculation, SNDK payouts and the 0.001 SNDK minimum; non-Home Port stock rewards verify the CANAL project's distribution, including Top 1000 coverage, the one-Port-per-hour rotation order, and in-kind payout of each Port's stock token. The specific invariants and test conclusions will be published together with the deployment records (§0).

The token launch itself is done. What you can check onchain today are the launch parameters: creator tax 2%, the revenue recipient, and whether Pons' buyback is switched off.

6.5 Audit

There is no audit report today, and this paper links to none — because none exists. The independent audit of the core protocol contracts is not complete. The commitment here is three sentences: until a report exists, no page claims to be audited; the moment one exists, this section carries a clickable link to it and every protocol contract address is published alongside it; once the report is public, a bug bounty opens.

Pons v2's own audits were still in progress when this paper was written; the protocol's handling of that risk is an explicit, public, written acceptance or a delay — never a silent launch. The CANAL token has already launched on Pons, so that risk has been taken rather than assessed.

7. Standing on Pons' shoulders

CANAL is built on Pons v2 and takes several of its rules as design premises: the creator tax is set at launch and can never change afterwards (so CANAL's 2% is a constitution, not a promise); Pons' built-in buyback is switched off for CANAL, because our buybacks go into ports rather than into a five-year lock.

The Home Port is CANAL / SNDK. Each trade carries a total fee of 3% of trading volume: 0.3% goes to Pons and 2.7% funds CANAL holder rewards. Rewards are calculated using CANAL holding weights among participants in that distribution round and paid in SNDK through Pons' automated contract mechanism, typically about once an hour rather than on a strict 60-minute schedule. The minimum payout per round is 0.001 SNDK. A calculated reward below this threshold is not paid in that round and does not accumulate or carry forward.

The public address for collecting CANAL / SNDK Home Port fees from V4 is 0x3aEE1845928aa9b9E55036814728b946c0b6f624. This is a collection-path address; the final reward distributor cannot be inferred from a recipient address.

Any fund migration must preserve the funds' existing purpose; holder rewards payable cannot be redirected to construction. RevenueVault's deployment and responsibilities will be disclosed separately.

For any authority to change a fee recipient address, the party able to execute it, the waiting period and the call path should be published. How that authority relates to the principal of each asset class must be verified against the actual custody contracts. CANAL held by the crew stays in holders' wallets.

Principal security is not evidenced by the old design's 35% reserve or by unverified contract names. Whether the indexer subscribes to and publishes the relevant authority events should likewise be confirmed against actual operating records.

8. What could go wrong? (Risks)

We say it first, so nobody has to say it for us.

• Public records and implementation details are not yet aligned: the item to watch most closely right now. Per-Port initial funding and LP lock records, the actual custody contracts and their authority, and test results and independent audits for the current version have not been published in full (§0, §6.5). Missing records do not mean rewards are not operating; but until they are complete, treat this paper's reserve, inventory and authority constraints as design requirements awaiting verification.
• Reward amounts are uncertain: reward amounts vary with fee revenue and are not a promise of fixed returns. The Home Port and other Stock Ports use different eligibility, allocation and payout mechanisms. Holding CANAL does not automatically qualify an address for every reward stream. Actual payouts also depend on the relevant distribution process and thresholds.
• Regulation: the heaviest item in this version. Distributing SNDK — a tokenized debt security — to CANAL holders by holding, with the ratios in the open, is the arrangement most likely to be classified as revenue sharing. Launch is not conditioned on a written securities-law opinion (founder decision, 2026-09-07); the front end enforces geographic restrictions and self-declaration. Regulatory and geographic-access decisions belong to the deployment and front-end layer; they do not alter the protocol economics set out in v2.6.
• Claimability of stock tokens: the issuer's restrictions on transfer and on who may hold can change, affecting Ports and reward payouts; when an asset is added or changed, the actual receiving and transfer conditions should be verified.
• SNDK as the unit of account: CANAL's dollar price = CANAL/SNDK × SNDK/USD, carrying all of SNDK's volatility plus the mispricing of Stock Tokens while US markets are closed.
• The non-Home Port stage switch affects construction pace: from the 100th non-Home Port, the construction allocation of non-Home Port LP fees falls from 50% to 30% and Crew rewards rise from 30% to 50%; the protocol promises no rate of opening. Home Port fee allocation is unchanged by this transition.
• Complexity of holding recognition and reward distribution: the crew does not need to stake or deposit, but each of the two reward streams must correctly identify the relevant onchain holdings: the Home Port by holding weight, non-Home Ports by the Top 1000 CANAL holders. Snapshot timing, excluded addresses, ties and indirect holdings are implementation details to be disclosed.
• Pons v2 unaudited (at the time of writing) and the platform's revenue-routing power (§7: future fee flow only, never principal).
• Pace of opening: construction funding comes from the construction allocation of non-Home Port LP fees and from SNDK rewards earned by permanently locked CANAL; on days without volume, ports are deferred.
• Robinhood Chain's sequencer: when the centralized sequencer is down, every permissionless action is delayed; the design has no time-critical dependency.
• Oracles and valuation: a stale price source, market deviation and execution delays affect valuation and construction trades. The protections actually in place and their coverage should have corresponding implementation and verification records.
• Revenue uncertainty: every distribution and every port depends on trading volume. The protocol makes no promise of any return.

NON-HOME PORT LP FEE ALLOCATION
Before Port #100: Build 50% · Crew rewards 30% · Builders 20%
From Port #100: Build 30% · Crew rewards 50% · Builders 20%
The Home Port is excluded from this count. This change does not alter the Home Port fee allocation.

9. What's next (Roadmap)

Live: CANAL has launched on Pons v2 and graduated; the Home Port is CANAL / SNDK, and the open Stock Ports are on the Ports page. Completed: token launch and Home Port establishment. Open Ports are documented through onchain records.

Reward operating status: Home Port holder rewards operate through the Pons protocol. Rewards from other Stock Ports are distributed by the CANAL project, with their deployment, operating and audit progress disclosed separately. Non-Home Stock Port rewards rotate automatically through one Port per hour and cover the Top 1000 CANAL holders. The stock rewards dashboard is coming soon.

Public records and verification still to be completed: per-Port initial funding and LP lock records, the actual custody contracts and their authority, and test results and independent audits for the current version. The absence of these records or audits does not place the whole project back in a pre-launch stage.

Next: construction inventory, settlement and automation modules, independent audits, and Port expansion.

Phase 2 · PAID DAILY. DUG DAILY.: daily distribution, settlement and port opening become routine; the indexer and the home page go live on real data; the router page launches (three-route comparison); English site.

Phase 3 · Deeper: without breaking "permanently locked", research adding depth to open ports, concentrated liquidity ranges, and a more decentralized source for the ranking. Any change of mechanism is published as a new version of the specification and audited.

10. Parameters at a glance

Read the two tables separately: the Home Port allocates by trading volume and non-Home Ports allocate by LP fee revenue. They are not combined into one shared allocation model. Parameters marked "awaits verification" can only be checked once the matching contract addresses, deployment records and audit report are published (§0); those notes do not call for removing safety checks that already exist in the deployed contracts — once confirmed, the accurate current values should be filled in. The base fee and Pons' share follow Pons' onchain parameters.

Appendix A · Launch records and funding sources

CANAL has launched and graduated. Launch, graduation, and construction funding follow actual transaction records. Historical costs are calculated from those transactions. This appendix should describe the bootstrap through the actual launch, initial purchase, graduation, pool-creation and lock transactions.

The earlier model — curve cost, public average cost and graduation price premised on "the protocol buying 35% of total supply first" — is not used to describe this project's actual launch, nor to estimate the cost or return of current holders.

A complete bootstrap record should include transaction hashes, timestamps, asset amounts, funding sources and final destinations; until those records are complete, an assumed model is not used in place of actual history.

Appendix B · Glossary

• Port: a permanently locked liquidity pool of CANAL and one Stock Token.
• HOME PORT: the CANAL / SNDK main pool after Pons graduation.
• Island: a Stock Token; "joining an island" = opening a port for it.
• Crew: users who buy and hold CANAL. Boarding: buying and starting to hold CANAL. Leaving: no longer holding CANAL. Crew rewards / THE CREW SHARE: the collective term for Home Port holder rewards and other Stock Port Crew rewards, each with its own eligibility and payout rules. ON BOARD: the combined holdings of wallets currently holding CANAL.
• Stock rewards: paid directly in the stock token of the corresponding non-Home Port. Top1000: the 1000 highest-ranked CANAL holders by holdings, eligible for non-Home Stock Port rewards. Non-Home Port #100 rule: the Crew allocation of LP fees rises from 30% to 50%; the Home Port is unaffected.
• Builders / the diggers: the team, with zero allocation. THE CANAL / THE MARKET: no longer used as fixed allocation labels for a 35% protocol reserve and a 65% market; supply and initial allocation are in §4.1.
• Construction inventory: CANAL and stock tokens prepared for future Port LP.
• BALANCED DEPTH: the construction settlement model from the original design; its actual applicability must be verified against the current funding inputs and execution algorithm.
• CANAL COMMITTED: construction-related CANAL holdings identified from a published address scope and methodology; it does not use 35% as a fixed base and is not equivalent to leaving circulation or to being fully and permanently locked.
• LIVE PERMANENT LIQUIDITY: the real-time dollar value of the two-sided liquidity the protocol cannot withdraw (open ports only; moves with prices).
• CUMULATIVE CAPITAL DEPLOYED: the total capital ever put into permanent LP, valued at the time each port was built (only goes up).
• READY / OPEN: waiting for a trading window / opened and permanently locked.
• BEST PATH WINS: the router never forces flow through CANAL; the best route wins.

Appendix C · The language of the canal

Every stock is an island. We dig the canal. EVERY STOCK IS AN ISLAND. CANAL CONNECTS THEM. Paid daily. Dug daily. PAID DAILY. DUG DAILY. BUY CANAL. YOU'RE ON BOARD. HOLD CANAL. SHARE THE FLOW. Building the next Port. Keep digging. Dig a hundred ports. From the 100th non-Home Port, the Crew share of non-Home Port LP fees goes 30 → 50. DIG A HUNDRED PORTS. AT #100, THE CREW SHARE OF NON-HOME PORT LP FEES GOES 30 → 50. More Ports. More Flow. Keep digging. MORE PORTS. MORE FLOW. KEEP DIGGING. The protocol only buys. It never dumps. Zero team allocation. Builders earn their pay. ZERO TEAM ALLOCATION. BUILDERS EARN THEIR PAY. ANY PORT ↔ ANY PORT. BEST PATH WINS. The rules are public. What's onchain, go check. Every trade pays the crew. Every trade digs the canal. EVERY TRADE PAYS THE CREW. EVERY TRADE DIGS THE CANAL.

canal.market · Robinhood Chain · CANAL Whitepaper v2.6 · THE HUNDRED · September 2026