SEC Filing Document

Company: Canary Staked TRX ETF
Ticker: 
CIK: 2064768
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-04-18
Accession Number: 0001999371-25-004423
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2064768/000199937125004423/canary-s1_041825.htm

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automate digital agreements via smart contracts, and track goods across supply chains. The transparency and auditability of the TRX Blockchain enhance trust and efficiency in enterprise systems. 5. Identity and Security : TRX is being explored in decentralized identity frameworks, enabling credential verification and reducing fraud. Smart contract-based systems may also support privacy-preserving applications and selective disclosure mechanisms in the future. Governance and Ecosystem Development TRX holders participate in network governance primarily through the election of Super Representatives, who validate transactions, produce blocks and influence protocol-level decisions. TRX holders vote for Super Representatives by freezing their TRX and delegating votes, with vote weight proportional to the amount staked. While the current governance structure is more representative than direct, Super Representatives may influence network parameters such as block rewards, resource allocation policies and upgrade proposals. The governance model aims to encourage community participation and maintain decentralized control over core network functions.

Ecosystem development and
strategic expansion efforts within the Tron Network are supported by the “TRON DAO,” a decentralized autonomous organization
tasked with fostering the growth, security, and long-term sustainability of the Tron ecosystem. The TRON DAO allocates resources to fund
developer grants, infrastructure tooling, academic research and innovation initiatives that advance the Tron Network. The DAO promotes
a permissionless and inclusive framework for ecosystem development, empowering builders and users to collaborate on decentralized applications,
protocols and infrastructure.

The Tron Network was initially
founded by Justin Sun, a prominent entrepreneur in the blockchain space. Early development of the protocol was overseen by the TRON Foundation,
a non-profit entity based in Singapore, which played a central role in launching the network and bootstrapping its early user base. In
2021, the Tron Network formally transitioned to a fully decentralized governance model under the TRON DAO, marking a shift toward community-led
development and decentralization of control.

Ongoing core development contributions
are maintained by a distributed set of developers, including contributors to the Tron Grid API infrastructure, TVM improvements and cross-chain
interoperability via BitTorrent Chain (BTTC). While no single entity controls the protocol, key contributors continue to enhance TRX’s
scalability, usability and composability in alignment with community-driven governance mechanisms.

TRX Initial
Distribution and Supply

At the launch
of the Tron Network mainnet in 2018, a total supply of 100 billion TRX was established and allocated across various stakeholders to support
the long-term growth and decentralization of the network. These allocations included: (i) TRON Foundation operational reserves to support
protocol development, marketing and ecosystem growth; (ii) early private sale participants and strategic investors; (iii) founding team
members and early contributors, including Justin Sun; and (iv) a public token sale, conducted in 2017 to broaden community participation
and raise initial capital for development.

The
original TRX distribution was structured as follows: 15% was allocated to the public token sale, 34% to the TRON Foundation for
ecosystem development and operational funding, 10% to early investors, and 40% to the founding team and early contributors. These
allocations were subject to various vesting schedules to ensure orderly distribution and to mitigate short-term speculation. TRX was
initially issued as an ERC-20 token on Ethereum and later migrated to the native Tron mainnet following its official launch in June

Since its
launch, additional TRX has been issued through block rewards as part of the delegated proof-of-stake consensus mechanism. While TRX does
not have a fixed supply cap, issuance is governed by network parameters and subject to adjustment through governance. The TRON DAO now
oversees aspects of resource allocation, community development programs, and long-term ecosystem incentives designed to promote sustainability,
decentralization, and platform adoption.

TRX Market
and Digital Asset Trading Platforms

All transactions
on the Tron Network require TRX to cover resource costs, including Bandwidth and Energy, which account for the computational resources
necessary for processing and validating transactions. TRX also plays a fundamental role in securing the Tron Network through its delegated
proof-of-stake mechanism, where Super Representatives are elected by TRX holders to participate in consensus and governance mechanisms.
Additionally, TRX is used within decentralized applications, smart contract execution, staking rewards and governance decisions within
the Tron Network.

Beyond its
utility within the Tron Network, investors may purchase and sell TRX as a means of speculating on its market value or as a long-term investment
to gain exposure to the TRX ecosystem. The value of TRX in the market is influenced by several factors, including the supply and demand
for TRX, adoption of the Tron Network by developers and enterprises, network activity and transaction volume, staking participation and
broader market conditions affecting digital assets. As the adoption of the Tron Network grows and demand for its blockspace increases,
the economic dynamics of TRX may evolve accordingly.

The most common
means of determining a reference value is surveying trading platforms where secondary markets for TRX exist. The most prominent digital
asset trading platforms are often referred to as “exchanges”. However, they are not regulated and do not report trade information
in the same way as a national securities exchange (“Digital Asset Trading Platform”). As such, there are some differences
in the form, transparency, and reliability of trading data from Digital Asset Trading Platforms. Generally speaking, TRX data is available
from these Digital Asset Trading Platforms, which have publicly disclosed valuations for each executed trade, measured by one or more
fiat currencies such as the USD or Euro or another digital asset such as USDC or USDT. In addition, TRX and TRX-based tokens (and the
cryptocurrency and crypto tokens transiting other smart contract networks) are often traded through decentralized smart contract platforms,
referred to as “decentralized exchanges.” OTC dealers or market makers do not typically disclose their trade data.

Currently,
several Digital Asset Trading Platforms are operating worldwide and trading platforms represent a substantial percentage of TRX buying
and selling activity and provide the most data concerning prevailing valuations of TRX. TRX is currently listed for trading on a limited
number of U.S.-based Digital Asset Trading Platform including Coinbase, Kraken, and Crypto.com. Most of TRX trading activity takes place
on overseas platforms including Binance, Bybit, and HTX. A Digital Asset Trading Platforms provides investors with a way to purchase and
sell TRX, similar to stock exchanges like the New York Stock Exchange or NASDAQ, which provide ways to buy stocks and bonds in the so-called
“secondary market.” Unlike stock exchanges regulated to monitor securities trading activity, Digital Asset Trading Platforms
are largely regulated as money services businesses (or a foreign regulatory equivalent) that monitor against money laundering and other
illicit financing. Digital Asset Trading Platforms operate websites that permit investors to open accounts with the trading platform and
then purchase and sell TRX and other digital assets.

Although bitcoin
was the first cryptocurrency, since 2009, the number of digital assets, market participants and companies in the space has increased dramatically.
There are currently many other prominent digital assets. The digital asset marketplace is still being defined and evolving, including
the practices of exchanges, the behavior of investors, and the protocols and prominence of particular digital assets. Before 2017, bitcoin
accounted for approximately 85% or more of the total market capitalization of all digital assets. By August 2024, this figure had dropped
to around 54% as other digital assets, such as ether, launched and/or grew faster than bitcoin.

Shareholders
creating Shares can acquire TRX to be deposited with the Trust either on Digital Asset Trading Platforms, in the OTC markets or in direct
bilateral transactions. OTC trading and direct transactions of TRX are generally accomplished via bilateral agreements on a principal-to-principal
basis. All risks and issues related to creditworthiness are between the parties directly involved in the transaction.

Development
of the Tron Network

Digital assets
such as TRX may be used, among other things, to buy and sell goods and services or to transfer and store value by users. The Tron Network
and other digital asset networks are a new and rapidly evolving industry. The growth of the digital asset industry in general, and the
Tron Network in particular, is subject to a high degree of uncertainty. The factors affecting the further development of the digital asset
industry, as well as the Tron Network, include:

●	continued worldwide growth in the adoption and use of TRX and other digital assets, including those competitive
with TRX;

●	government and quasi-government regulation of TRX and other digital assets and their use, or restrictions
on or regulation of access to and operation of the Tron Network or similar digital asset systems;

●	the maintenance and development of the open-source software codebase used for Tron Network services;

●	changes in consumer demographics and public tastes and preferences;

●	the availability and popularity of other forms or methods of buying and selling goods and services, including
new means of using fiat currencies; and

●	general economic conditions and the regulatory environment relating to digital assets and digital asset
service providers.