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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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.

The Trust
is not actively managed and will not have any strategy relating to the development of the Tron Network. Furthermore, the Sponsor cannot
be certain as to the impact of the Trust and the expansion of its TRX holdings on the digital asset industry and the Tron Network. A decline
in the popularity or acceptance of the Tron Network may harm the price of the Shares. There is no assurance that the Tron Network, or
the service providers necessary to accommodate it, will continue in existence or grow. Furthermore, there is no assurance that the availability
of and access to digital asset service providers will not be negatively affected by government regulation or supply and demand of TRX.

Market Participants

Stakers and Super Representatives

Stakers and Super Representatives
range from individual TRX holders to professional staking organizations that design and maintain high-availability validator infrastructure.
Users who do not operate a Super Representative node can delegate their votes by freezing TRX and supporting an existing Super Representative
to participate in staking rewards. Any account holding a minimum balance of one TRX is eligible to freeze TRX and participate in the staking
process. Only the top 27 vote-receiving candidates are selected as active Super Representatives, though additional candidates may receive
rewards as standby Super Representatives depending on network conditions.

Investment and Speculative
Sector

This sector includes the investment
and trading activities of both private and professional investors and speculators. Historically, larger financial services institutions
are publicly reported to have limited involvement in investment and trading in digital assets. However, the participation landscape is
beginning to change and large corporations, financial institutions and investment firms are taking positions providing exposure to TRX
and other digital assets.

Retail Sector

The retail sector
includes users transacting in direct peer-to-peer TRX transactions through the direct sending of TRX over the Tron Network. The
retail sector also includes transactions in which consumers purchase goods and services from commercial or service businesses
through direct transactions or third-party service providers, although the use of TRX as a means of payment is still developing and
has not yet been accepted in the same manner as bitcoin or ether due to its infancy and because TRX has a different purpose than
bitcoin and ether.

Service Sector

This sector includes companies
that provide various services including the buying, selling, payment processing and storing of TRX. Bitfinex, Bitstamp, Coinbase Pro,
Gemini, Kraken and FTX are some of the largest trading platforms by volume traded. Coinbase Custody Trust Company, LLC, the TRX Custodian
for the Trust, is a digital asset custodian that provides custodial accounts that store TRX for users. As the Tron Network continues to
grow in acceptance, it is anticipated that service providers will expand the currently available range of services and that additional
parties will enter the service sector for the Tron Network.

Potential Forms
of Attack Against the Tron Network

All blockchain-based
networked systems are vulnerable to various attacks, including majority-controlled attacks, distributed denial-of-service strikes, botnet
attacks, and Sybil attacks. For example, a Sybil attack could occur if an attacker manages to create a large number of validator nodes,
either by splitting their stake into multiple smaller nodes or by acquiring enough TRX.

Many digital
asset networks have also been subjected to denial-of-service attacks, which led to temporary delays in transaction recording and the transfer
of digital assets. Any similar attacks on the Tron Network that impact the ability to transfer TRX could adversely affect the price of
TRX and the value of the Shares. The development of software on and consensus around the Tron Network could be temporarily or more permanently
impacted by any attack.

Summary of a TRX Transaction

Prior to engaging in TRX transactions
directly on the Tron Network, a user generally must first install on their computer or mobile device a compatible TRX wallet application.
This software allows the user to generate a private and public key pair associated with a TRX address. The TRX wallet software and associated
address enable the user to connect to the Tron Network and transfer TRX to and receive TRX from other users.

Each TRX address, or wallet,
is associated with a unique public key and private key pair. To receive TRX, the recipient must provide their public key to the sender
initiating the transfer. This process is similar to providing a routing address for a wire transfer in traditional financial systems.
The sender authorizes the transaction by signing it with the private key associated with the wallet holding the TRX. The recipient does
not reveal or share their private key with the sender.

Private keys are essential
to authorizing and controlling TRX transactions. If a user loses their private key, they may permanently lose access to the TRX in the
associated wallet. Similarly, if a private key is deleted without a backup, the TRX is irretrievably lost. To initiate a TRX transfer,
the user’s wallet software must validate and sign the transaction using the private key. All transactions on the Tron Network require
computational resources in the form of Bandwidth or Energy, which are paid for using TRX if the user does not have sufficient free resource
credits. The transaction is then digitally signed and broadcast to the Tron Network for processing.

Transactions are validated
and recorded on the TRX Blockchain by elected Super Representatives. These validators verify the transaction’s authenticity, add
it to a new block and propagate the updated ledger across the network. Each new block includes a reference to the preceding block, ensuring
the continuity and integrity of the blockchain.

Once a transaction is confirmed
and included in a block, the wallet software of both the sender and the recipient will reflect the updated TRX balances. Once confirmed
on-chain, a TRX transaction is irreversible.

Some TRX transactions may
occur “off-chain” and therefore are not recorded on the Tron blockchain. These off-chain transactions may involve the transfer
of access to a wallet containing TRX or internal ledger changes within a centralized exchange or custodial service. Unlike on-chain transactions,
which are publicly verifiable and secured by the Tron Network’s consensus mechanism, off-chain transactions carry additional risks,
including counterparty risk, and do not constitute direct blockchain-based transfers of TRX.

Creation of New TRX

Initial Creation of TRX

Unlike digital assets such
as bitcoin, which are solely created through a progressive mining process, 100 billion TRX were pre-mined and created prior to the launch
of the Tron mainnet in 2018. At genesis, the initial 100 billion TRX were allocated as follows: (i) approximately 15% was designated for
public purchasers through a token sale conducted in 2017; (ii) 34% was allocated to the TRON Foundation to support ecosystem development,
marketing and operational growth; (iii) 10% was reserved for early private sale participants; and (iv) 40% was allocated to the founding
team and early contributors, including founder Justin Sun and early advisors.

Each of these allocations
was subject to distinct vesting and release schedules, intended to ensure gradual distribution, prevent short-term speculation and promote
the decentralization and long-term sustainability of the Tron Network. Since launch, portions of the allocated TRX have been released
in accordance with these schedules. TRX was originally issued as an ERC-20 token on the Ethereum network and was later migrated to the
native TRX Blockchain upon the launch of the mainnet in June 2018.

TRX Supply Characteristics

TRX does not have a fixed
supply cap, distinguishing it from deflationary digital assets. New TRX may be introduced through block rewards issued to Super Representatives
under the Tron Network’s delegated proof-of-stake consensus mechanism. The issuance rate and reward parameters are determined by
network governance and may be adjusted over time. The ongoing emission of TRX is intended to support network security, reward validators
and encourage active participation in governance and ecosystem development. All TRX in circulation is publicly viewable on the TRX Blockchain,
and the supply is governed transparently through community-driven processes.

TRX Market and TRX Exchanges