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Canopy Tokenize

The Canopy Ratchet

A redeemable endowment mechanism for $CNPY.

The Canopy Ratchet is designed to turn protocol activity into permanent onchain backing. Trading activity can acquire tokenized equities for an Endowment, while holders can redeem their proportional share by burning $CNPY.

A treasury you can’t claim is a number.
Backing you can redeem is something else entirely.

01

The Ratchet

Four ideas, in order. None of them require trusting a discretionary treasury.

Every $CNPY trade can contribute value to the system.

That value can be used to acquire tokenized equities for a permanent Endowment.

The Endowment is designed to become a redeemable claim rather than a discretionary treasury.

A holder can burn $CNPY and receive their proportional share of the Endowment, in kind.

  1. $CNPY trade
  2. Protocol fee
  3. Capital allocation
  4. Tokenized equities
  5. Permanent Endowment
  6. Pro-rata redemption
02

A treasury that becomes a claim.

The Endowment is intended to hold external tokenized assets.

It is not intended to hold $CNPY, $CNPY liquidity, or any rwa.store index containing $CNPY.

The reason is structural: backing must remain economically external to the asset it supports. Backing a token with itself produces a number that falls exactly when it is needed.

Permanent

Assets are not intended to be sold for discretionary treasury operations.

External

The backing is made from assets whose value does not depend on $CNPY.

Redeemable

Holders can claim a proportional share through burn-redemption.

03

In-kind redemption

Redemption is proportional and settled in the underlying assets.

If a holder owns 1% of the redeemable supply and burns that position, they receive approximately 1% of each Endowment asset, minus any exit fee.

The protocol does not need to sell the basket first. The redeemer receives the underlying tokenized assets directly, which is what makes the claim independent of market conditions at the moment of exit.

ExampleIllustrative only
Redeemable supply
770,000,000 CNPY
Holder
7,700,000 CNPY
Share
1.00%
Endowment
$5,000,000 equivalent
Gross proportional claim
$50,000 equivalent
Exit fee
3%
Net assets received
$48,500 equivalent

Illustrative figures only. The redeemable supply shown is a round number chosen to make the arithmetic legible, not a published figure — exact burn and dead-address accounting for $CNPY is still being confirmed, and the live number will differ.

05

Capital allocation without discretion.

The concept is simple: when $CNPY is expensive relative to its backing, build the balance sheet. When it is cheap relative to its backing, reduce supply.
If price is above redeemable NAV
Backing is cheap relative to the market.
  • Acquire more external assets
  • Grow the Endowment
If price is below redeemable NAV
The market is cheap relative to backing.
  • Use available fee capital for $CNPY buyback and burn
  • Reduce supply
bp
b
redeemable backing per token
p
market price

The allocation rule is a design intent, not a deployed contract. Thresholds, capital limits and the mechanism that reads the ratio are all subject to feasibility work.

06

Income or growth

Two intended ways to participate, with the same underlying assets behind both.

Income mode

Planned

Receive distributable protocol revenue and eligible corporate-action proceeds.

Growth mode

Planned

Recycle distributable value back into the system rather than taking it out.

No emissions. No inflationary reward token.

Returns are intended to come from assets owned or revenue earned — which also means they are bounded by what the system actually earns, rather than by a schedule.

Both modes are conceptual. Neither is implemented, and the split between distributable and retained value has not been fixed.

07

The system expands beyond $CNPY

rwa.store is intended to support fully backed onchain indexes built from tokenized equities, crypto and RWAs.

A permanent share of future rwa.store protocol revenue can route into the Canopy Endowment. That makes the Endowment a claim on a product line rather than on a single token’s trading activity.

Revenue flywheel
  1. rwa.store products
  2. AUM and protocol activity
  3. Protocol revenue
  4. Endowment growth
  5. Stronger $CNPY reserve claim
returns to rwa.store products
Allocation flywheel
  1. Endowment
  2. Selected rwa.store index positions
  3. rwa.store AUM
  4. Protocol fees
returns to Endowment

Any index held by the Endowment must exclude $CNPY. The second loop is the one place where circular backing could be introduced by accident, so the exclusion is a hard constraint rather than a preference.

08

Corporate actions

Tokenized equities may reflect dividends, splits and other corporate actions through onchain mechanisms.

Where value is reflected through a token’s multiplier — for example uiMultiplier() — the token’s price changes while its raw balance does not. In that case the value stays part of Endowment principal.

Where a separate transferable asset is received instead, it arrives as a distinct balance, and may be treated as distributable income.

Reflected in the multiplier
Raw balance unchanged
Received as a separate asset
New balance arrives in the vault
Reflected in the multiplier
Price per token moves
Received as a separate asset
Existing positions unchanged
Reflected in the multiplier
Remains Endowment principal
Received as a separate asset
May be treated as distributable income

Final treatment depends on the live mechanics of each supported asset. Corporate-action handling differs between issuers and is being verified per asset rather than assumed.

09

Why this is different

The differences are all about whether a holder can act on the backing.
Traditional token treasury
Treasury is a dashboard number
Canopy Ratchet
Endowment is designed as a redeemable claim
Traditional token treasury
Discretionary spending
Canopy Ratchet
Rules-based allocation
Traditional token treasury
Circular backing possible
Canopy Ratchet
$CNPY excluded from its own backing
Traditional token treasury
Exit removes value
Canopy Ratchet
Exit fee can increase remaining holders’ reserve claim
Traditional token treasury
Yield often depends on emissions
Canopy Ratchet
Revenue intended to come from real assets and protocol activity
10

Metrics

These are the figures the mechanism will publish once it exists.
Endowment value
Not live
Redeemable NAV / CNPY
Not live
Reserve assets
Not live
CNPY burned
Not live
Protocol revenue added
Not live
Assets distributed
Not live

Placeholders. No live values are shown anywhere on this page, and none of these figures should be inferred from the illustrative example above.

Every $CNPY trade can acquire tokenized equities for a permanent Endowment, and holders can burn $CNPY for their proportional slice, turning the treasury from a number on a dashboard into a redeemable claim.

Sophisticated internals.
One simple idea: backing should be claimable.

Status
In development

The Canopy Ratchet is an evolving protocol design currently undergoing technical feasibility work. Final implementation may change based on custody constraints, liquidity, supported asset mechanics, regulatory requirements and security review.

Nothing on this page should imply that redemption, rewards, buybacks or Endowment mechanics are currently live unless explicitly marked as such. Figures shown are illustrative and do not represent live protocol state.