Development Fund

Overview

The Development Fund is a protocol-level mechanism introduced by CIP-0082. From its activation onward, a configurable percentage of all future mint emissions in each issuance round are allocated to the Development Fund, as defined by IssuanceConfig.optDevelopmentFundPercentage (default: 5%).

For every issuance round:

  • The Development Fund share (default: 5%) is computed as part of the round’s CC available to mint.

  • The corresponding amount is recorded as an unclaimed entitlement under the contract Splice.Amulet.UnclaimedDevelopmentFundCoupon.

  • The remaining minting tranches are reduced proportionally.

Over time, multiple Splice.Amulet.UnclaimedDevelopmentFundCoupon contracts may accumulate. An automation in the SV app periodically merges small unclaimed coupons to keep the number of active contracts bounded.

Merging is triggered when the number of unclaimed coupons reaches at least 2 × unclaimedDevelopmentFundCouponsThreshold (as defined in the SV configuration). When this condition is met:

  • The threshold smallest coupons (by amount) are selected.

  • The selected coupons are archived.

  • A new Splice.Amulet.UnclaimedDevelopmentFundCoupon is created for the sum of their amounts.

Larger coupons are intentionally left untouched to reduce contention with externally prepared transactions that may reference their contract IDs.

The available Development Funds are tracked by the DSO party. Governance decisions regarding Development Fund allocations are made off-ledger as defined in CIP-0100. The designated on-ledger party, the Development Fund Manager, effectuates these decisions by allocating portions of the accumulated entitlement to specific beneficiaries. An allocation results in the creation of a Splice.Amulet.DevelopmentFundCoupon contract for the beneficiary.

Once allocated:

  • The beneficiary (local or external party) may collect the allocation via the wallet app automation. This exercises the minting right embedded in the Splice.Amulet.DevelopmentFundCoupon and mints the corresponding amount of Canton Coin to the beneficiary.

  • The Development Fund Manager may withdraw an allocation before it is collected. This archives the corresponding Splice.Amulet.DevelopmentFundCoupon and creates a new Splice.Amulet.UnclaimedDevelopmentFundCoupon returning the amount to the Development Fund entitlement.

  • If the beneficiary does not collect the allocation within its validity period, it may expire automatically via SV app automation. Expiration archives the Splice.Amulet.DevelopmentFundCoupon and creates a new Splice.Amulet.UnclaimedDevelopmentFundCoupon for the same amount.

The Development Fund Manager is responsible for managing allocations in accordance with governance decisions defined in CIP-0100.

Managing Development Fund Allocations

Development Fund allocations are managed through the Development Fund tab in the wallet UI, which serves to effectuate the allocations decided in accordance with CIP-0100.

This tab provides visibility into the current Development Fund balance and allows the Development Fund Manager to allocate and manage coupons.

Important

The Development Fund tab is primarily intended for the current Development Fund Manager designated by the CF Foundation.

If your party is not the designated Development Fund Manager, you will not be able to create allocations.

If your party was formerly the Development Fund Manager, you may use this page to manage your active Development Fund allocations and review the history of your past allocations.

If your party is the beneficiary of an allocation, you will be able to view the history of those allocations.

Otherwise, this page can be safely ignored.

Development Fund Total

The Development Fund Total indicator displays the total amount currently available in the Development Fund.

This value corresponds to the sum of all active Splice.Amulet.UnclaimedDevelopmentFundCoupon contracts.

This information is visible to all users.

Development Fund Allocation

The Development Fund Allocation section allows the current Development Fund Manager to allocate funds to a beneficiary.

This section is only enabled for the current manager.

To create an allocation, the manager must provide:

  • Amount

  • Beneficiary

  • Expires At

  • Reason

Submitting the allocation creates a Splice.Amulet.DevelopmentFundCoupon contract for the specified beneficiary.

Unclaimed Development Fund Allocations

The Unclaimed Development Fund Allocations section lists all active Splice.Amulet.DevelopmentFundCoupon contracts that:

  • Have been allocated by the current or a former manager, and

  • Have not been collected, expired, withdrawn, or rejected.

A beneficiary does not see their coupon in this list. Only users who are or have been Development Fund Manager can view these entries.

From this list, the Development Fund Manager (current or former) may withdraw an allocation by providing a withdrawal reason.

Withdrawing an allocation:

  • Archives the corresponding Splice.Amulet.DevelopmentFundCoupon.

  • Creates a new Splice.Amulet.UnclaimedDevelopmentFundCoupon returning the amount to the Development Fund entitlement.

Coupon History

The Coupon History section allows the current or former Development Fund Manager to view historical allocations, and beneficiaries to view those where their party was the beneficiary.

This includes Splice.Amulet.DevelopmentFundCoupon contracts that have been archived due to:

  • Collection (claimed by the beneficiary)

  • Expiration (expired by SV automation)

  • Withdrawal (withdrawn by the Development Fund Manager)

  • Rejection (rejected by the beneficiary via the Ledger API)

For each entry, the UI displays the event that caused the coupon to be archived.

Rejecting an Allocation

If a beneficiary wishes to reject an allocation, this must be done via the Ledger API.

The wallet UI does not provide a reject action for beneficiaries.

Changing the Development Fund Configuration

The Development Fund configuration is defined in the AmuletConfig and IssuanceConfig types.

Two optional fields control the behavior of the Development Fund:

  • IssuanceConfig.optDevelopmentFundPercentage Defines the percentage of each issuance round allocated to the Development Fund.

    If this field is unset (null), the Daml issuance logic defaults to 5%.

  • AmuletConfig.optDevelopmentFundManager Designates the party authorized to allocate Development Fund entitlements.

Changes to either the Development Fund percentage or the Development Fund Manager must be performed through the standard governance process.

Specifically, these parameters are updated via the “Set Amulet Rules Configuration” vote.

This vote is submitted and approved by the SVs in accordance with the normal governance rules of the network.

Once the vote is approved and the updated configuration becomes effective:

  • The updated Development Fund percentage applies to subsequent issuance rounds.

  • The designated Development Fund Manager gains authority to allocate Development Fund entitlements.

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