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By relying on the current security architecture of web3, developers make many compromises, from sovereignty to censorship. We believe that Web3 applications without full sovereignty are just Web2 apps with bad UX. Canopy addresses this by eliminating security and scaling bottlenecks, and maintaining interoperability and composability, solving the blockchain trilemma and enabling scalable, autonomous, and secure ecosystems.

Canopy is built for new and existing applications. Canopy enables the creation of side-chains and interoperability tools, with functionality only limited to your imagination. Canopy can extend the functionality of your existing application, or act as an entirely new version. Need a scalable EVM on the side of your application? Canopy can do that. Missing incentives from your current protocol? Canopy can read your chain and build in the missing incentives as a modular side-chain.

Recursiveness is the ability for a system to replicate itself within the system. A recursive blockchain is a blockchain that can both give and receive security—creating nested webs of security within the network. Because those relationships are voluntary, Nested Chains can migrate, swap roots, or detach as their ecosystem grows—nothing is locked in stone. As a Nested Chain, you can compose new features or specialized logic without duplicating the entire security apparatus.

Nested Chains maintain their interoperability after they gain sovereignty, because every chain in the Canopy ecosystem, nested or sovereign, relies on the same one-way permissionless interoperability. Because it is one way, relying on committees, switching the validator set changes the nodes, but not the code. In other words, nothing changes on how the network interacts with the ecosystem, preserving seamless interoperability. Sovereignty changes the signers, not the underlying architecture.

The Canopy blockchain issues a block reward to incentivize restaking-based validating and delegating. Beyond that, validators and delegators receive native rewards of nested chains through our unique cross-pollinating economics.

Restaking is a core component of Canopy's economic framework, driving validator and delegator participation in the ecosystem's growth. As new Nested Chains emerge, stakeholders must restake their CNPY to maximize rewards, unlocking additional native token rewards. We anticipate that not all validators will stake for every chain, creating a dynamic where demand for new Nested Chains drives staking. Those who don't restake will experience reward dilution, as active stakeholders accumulate more rewards. This mechanism incentivizes CNPY retention, as stakeholders seek to capitalize on the expanding ecosystem.