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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an individual validator or validating pool’s validating power to exceed 50% of the validating power of a digital asset network that retained or attracted less validating power, thereby making digital asset networks that rely on proof-of-stake more susceptible to attack. Protocols may also be cloned. Unlike a fork, which modifies an existing blockchain, and results in two competing networks, each with the same genesis block, a “clone” is a copy of a protocol’s codebase, but results in an entirely new blockchain and new genesis block. Tokens are created solely from the new “clone” network and, in contrast to forks, holders of tokens of the existing network that was cloned do not receive any tokens of the new network. A “clone” results in a competing network that has characteristics substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone.

hard fork may adversely affect the price of TRX at the time of announcement or adoption. For example, the announcement of a hard fork
could lead to increased demand for the pre-fork digital asset, in anticipation that ownership of the pre-fork digital asset would entitle
holders to a new digital asset following the fork. The increased demand for the pre-fork digital asset may cause the price of the digital
asset to rise. After the hard fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would
be less than the price of the digital asset immediately prior to the fork. Furthermore, while the Trust would be entitled to both versions
of the digital asset running in parallel, the Sponsor will, as permitted by the terms of the Trust Agreement, determine which version
of the digital asset is generally accepted as the Tron Network and should therefore be considered the appropriate network for the Trust’s
purposes, and there is no guarantee that the Sponsor will choose the digital asset that is ultimately the most valuable fork.

Either
of these events could therefore adversely impact the value of the Shares. As illustrative examples of a digital asset hard fork,
following the DAO hack in July 2016, holders of Ethereum voted on-chain to reverse the hack, effectively causing a hard fork. For
the days following the vote, the price of Ethereum rose from $11.65 on July 15, 2016 to $14.66 on July 21, 2016, the day after the
first Ethereum Classic block was mined. On November 6, 2016, Rhett Creighton, a Zcash developer, cloned the Zcash Network to launch
Zclassic, a substantially identical version of the Zcash Network that eliminated the Founders’ Reward. For the days following
the date the first Zclassic block was mined, the price of ZEC fell from $504.57 on November 5, 2016 to $236.01 on November 7, 2016
in the midst of a broader sell off of ZEC beginning immediately after the Zcash Network launch on October 28, 2016. A clone may also
adversely affect the price of TRX at the time of announcement or adoption. A future fork in or clone of the Tron Network could
adversely affect the value of the Shares or the ability of the Trust to operate.

Shareholders
May Not Receive The Benefits Of Any Forks Or “Airdrops.”

refer to the right to receive any benefits arising from a fork, airdrop (defined below), or similar event as an “Incidental Right”
and any such virtual currency acquired through an Incidental Right as “IR Virtual Currency.” The only crypto asset to be held
by the Trust will be TRX. The Trust has adopted the following procedures to address situations involving any fork, airdrop or similar
event that results in the issuance of Incidental Rights or IR Virtual Currency that the Trust may receive. The Trust Agreement stipulates
that if a fork occurs, the Sponsor shall determine which asset constitutes TRX and which network constitutes the Tron Network, and the
Sponsor will as soon as possible cause the Trust to irrevocably abandon the Incidental Rights or IR Virtual Currency. Because the Trust
will abandon any Incidental Rights and IR Virtual Currency, the Trust would not receive any direct or indirect consideration for the Incidental
Rights or IR Virtual Currency and thus the value of the Shares will not reflect the value of the Incidental Rights or IR Virtual Currency.
Such Incidental Rights or IR Virtual Currency will not be taken into account for purposes of determining NAV. In the event the Trust seeks
to change this position, an application would need to be filed with the SEC by the Exchange seeking approval to amend its listing rules
to permit the Trust to distribute the Incidental Rights or IR Virtual Currency that is not TRX in-kind to the Sponsor, as agent for the
Shareholders, and the Sponsor would arrange to sell or otherwise dispose of the Incidental Rights or IR Virtual Currency and for the proceeds
(if any) to be distributed to the Shareholders. There can be no assurance as to whether or when the Sponsor would make such a decision,
or when the Exchange will seek or obtain this approval, if at all.

addition to forks, a digital asset may become subject to a similar occurrence known as an “airdrop.” In an airdrop, the promotors
of a new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the
new digital asset for free, based on the fact that they hold such other digital asset. Neither the Trust nor the Sponsor shall be under
any obligation to claim or attempt to secure or realize any economic benefit from “airdropped” assets, and the Sponsor will
cause the Trust to irrevocably and permanently abandon, for no consideration, such Incidental Rights or IR Virtual Currency. In the event
the Trust seeks to change this position, an application would need to be filed with the SEC by the Exchange seeking approval to amend
its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency associated with the airdropped assets
in-kind to the Sponsor, as agent for the Shareholders, and the Sponsor would arrange to sell or otherwise dispose of the Incidental Rights
or IR Virtual Currency and for the proceeds (if any) to be distributed to the Shareholders.

With
respect to any fork, airdrop or similar event, the Sponsor will cause the Trust to irrevocably abandon the Incidental Rights and any IR
Virtual Currency associated with such event. As such, Shareholders will not receive the benefits of any forks, and the Trust is not able
to participate in any airdrop. In the event the Trust seeks to change this position, an application would need to be filed with the SEC
by the Exchange seeking approval to amend its listing rules to permit the Trust to change this policy.

Even
if required regulatory approval is sought and obtained, Shareholders may not receive the benefits of any forks, airdrops, or similar events,
the Trust may not choose, or be able, to participate in an airdrop, and the timing of receiving any benefits from a fork, airdrop or similar
event is uncertain. Any inability to recognize the economic benefit of a hard fork or airdrop could adversely affect the value of the
Shares.

The Event Of A Hard Fork Of The Tron Network, The Sponsor Will, If Permitted By The Terms Of The Trust Agreement, Use Its Discretion To
Determine Which Network Should Be Considered The Appropriate Network For The Trust’s Purposes, And In Doing So May Adversely Affect
The Value Of The Shares.

the event of a hard fork of the Tron Network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion
to determine, in good faith, which peer-to-peer network, among a group of incompatible forks of the Tron Network, is generally
accepted as the Tron Network and should therefore be considered the appropriate network for the Trust’s purposes. The Sponsor
will base its determination on a variety of then relevant factors, including, but not limited to, the Sponsor’s beliefs
regarding expectations of the core developers of TRX, users, service providers, businesses, miners and other constituencies, as well
as the actual continued acceptance of, mining power on, and community engagement with, the Tron Network. There is no guarantee that
the Sponsor will choose the digital asset that is ultimately the most valuable fork, and the Sponsor’s decision may adversely
affect the value of the Shares as a result. The Sponsor may also disagree with Shareholders and security vendors on what is
generally accepted as TRX and should therefore be considered “TRX” for the Trust’s purposes, which may also
adversely affect the value of the Shares as a result.

Any
Name Change And Any Associated Rebranding Initiative Of TRX May Not Be Favorably Received By The Digital Asset Community, Which Could
Negatively Impact The Value Of TRX And The Value Of The Shares.