What is Traffic fees?

Traffic fees

Traffic fees are payments in Canton Coin for using the Global Synchronizer's bandwidth; the fees are burned, linking usage to CC supply.

Category
Canton fundamentals
Related terms
4
Glossary size
34
Last reviewed
2026-08-10
Glossary / Canton fundamentals

Traffic fees explained

Traffic fees are how the Global Synchronizer charges for its service. Applications and validators that send transactions across the shared synchronizer purchase traffic, paid in Canton Coin, in proportion to the load they place on the infrastructure. The model resembles a utility bill more than a per-transaction gas auction: capacity is priced, purchased, and consumed.

The distinctive part is what happens to the payment: traffic fees are burned, permanently removing the CC from circulation. Combined with the minting that pays super validators, validators, and featured applications, this creates the network's burn-and-mint economy. Usage destroys supply while the reward schedule issues it, so net supply growth reflects the balance between network activity and issuance.

Fee parameters are not fixed constants; they are governed figures that super validators can adjust through the network's public proposal process, with pricing designed to track stable cost terms rather than float freely with the token's market price.

For traders, traffic fees are the fundamental demand story behind CC: every application that does real business across the Global Synchronizer must acquire and burn the token to operate.

Entry last reviewed 2026-08-10. Live prices, reserves, and activity belong on the linked market pages, which regenerate every five minutes.