SEC Filing Document

Company: Canary Staked TRX ETF
Ticker: 
CIK: 2064768
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0001999371-26-010857
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2064768/000199937126010857/canary-s1a_051526.htm

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past. For example, in September 2014, the Chinese digital asset exchange Huobi announced that it had sent approximately 900 bitcoin and 8,000 litecoin (worth approximately $400,000 at the prevailing market prices at the time) to the wrong customers. To the extent that the Trust is unable to seek a corrective transaction with such third party or is incapable of identifying the third party which has received the Trust’s TRX through error or theft, the Trust will be unable to revert or otherwise recover incorrectly transferred TRX. The Trust will also be unable to convert or recover its TRX transferred to uncontrolled accounts. To the extent that the Trust is unable to seek redress for such error or theft, such loss could adversely affect the value of the Shares. disruption of the internet may affect the Tron Network, which may adversely affect the TRX Industry and an investment in the Trust.

The
Tron Network relies on the Internet. A significant disruption of Internet connectivity (i.e., one that affects large numbers of users
or geographic regions) could disrupt the Tron Network’s functionality and operations until the disruption in the Internet is resolved.
A disruption in the Internet could adversely affect an investment in the Trust or the ability of the Trust to operate.

The
Tron Network’s decentralized governance structure may negatively affect its ability to grow and respond to challenges.

The
governance of decentralized networks, such as the Tron Network, is based on voluntary participation and open competition. The Tron Network
does not have a central decision-making authority or any formal mechanism through which binding governance decisions are adopted. Instead,
proposals are implemented through decentralized consensus, primarily via the Super Representative voting process. A lack of consensus
among TRX stakeholders may adversely affect the network’s utility, adaptability and long-term development, including the resolution
of technical or scaling challenges.

Historically,
the development of the Tron Network’s core protocol has been led by contributors affiliated with its founding entities and later
maintained through open-source developer communities. While core developers may propose upgrades to the Tron Network’s source code,
implementation ultimately depends on whether Super Representatives adopt such proposals and whether the broader community of users and
developers accept and utilize the upgraded protocol. Core developers cannot compel adoption of proposed changes or require validators,
developers or users to support continued participation in the network.

The
decentralized nature of TRX governance may make it difficult to implement significant changes or coordinate responses to future network
challenges, particularly where sustained, focused effort is required over time. If governance participants are unable to achieve sufficient
consensus or if Super Representatives fail to implement or support critical upgrades, the Tron Network may face protocol stagnation or
loss of competitiveness. This could reduce developer and user engagement, divert activity to competing blockchain ecosystems or reduce
speculative demand, any of which could adversely affect the value of TRX. In extreme cases, a breakdown in governance consensus could
result in a network fork or fragmentation of the community, with material consequences for the stability, usability and value of TRX.

The
open-source structure of the Tron Network means that the core developers and other contributors are generally not directly compensated
for their contributions in maintaining and developing the Tron Network. A failure to properly monitor and upgrade the Tron Network
could damage the Tron Network and an investment in the Trust.

The
Tron Network operates based on an open-source structure of TRX services codebase, meaning that developers and other contributors are
generally not directly compensated for their contributions in maintaining and developing such protocols. As a result, the developers
and other contributors of a particular digital asset, including TRX, may lack a financial incentive to maintain or develop the
network, or may lack the resources to adequately address emerging issues. Alternatively, some developers may be funded by companies
whose interests are at odds with other participants in a particular digital asset network. A failure to properly monitor and upgrade
the protocol of the Tron Network could damage the network.

addition, a bad actor could also attempt to interfere with the operation of the Tron Network by attempting to exercise a malign influence
over a core developer. To the extent that material issues arise with the Tron Network protocol and the core developers and open-source
contributors are unable to address the issues adequately or in a timely manner, the Tron Network and an investment in the Trust may be
adversely affected.

Digital
assets may have concentrated ownership and large sales or distributions by holders of such digital assets, or any ability to participate
in or otherwise influence a digital asset’s underlying network, could have an adverse effect on the market price of such
digital asset.

In connection
with the launch of the Tron Network, 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. As of May 2026, mor than 94 billion
TRX have been released and are in circulation, distributed across multiple wallets. Moreover, it is possible that other persons
or entities control multiple wallets that collectively hold a significant amount of TRX, even if each individual wallet holds a
relatively small amount. Additionally, some of these wallets may be controlled by the same person or entity. As a result of this
concentration of ownership, large sales or distributions by such holders could have an adverse effect on the market price of TRX.

TRX
may be subject to dilution

TRX does not have
a fixed supply cap, and additional TRX may be introduced into circulation over time through staking rewards and other network-level incentives.
While 100 billion TRX were pre-mined at the genesis of the Tron Network, new TRX continues to be issued as part of the delegated proof-of-stake
consensus mechanism, which compensates Super Representatives and encourages ongoing participation in network governance and validation.
As a result, the total number of TRX in circulation may increase over time depending on reward structures, governance decisions, and overall
network activity. The inflationary nature of TRX supply introduces ongoing dilution risk to existing holders. Although the issuance rate
may be adjusted by community governance to reflect changing market conditions, there is no assurance that the timing or volume of new
TRX entering circulation will align with user demand or liquidity conditions. Future changes to network parameters or governance proposals
could alter the pace of TRX issuance or introduce additional forms of token-based incentives, which may affect the market price, perceived
scarcity and overall investment profile of TRX.

temporary or permanent “fork” or a “clone” of the TRX blockchain could adversely affect the value of the
Shares.

The
Tron Network operates using open-source protocols, meaning that any user can download the software, modify it and then propose that the
users and validators of TRX adopt the modification. When a modification is introduced and a substantial majority of users and validators’
consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than a substantial majority
of users and validators’ consent to the proposed modification, and the modification is not compatible with the software prior to
its modification, the consequence would be what is known as a “hard fork” of the Tron Network, with one group running the
pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of
TRX running in parallel, yet lacking interchangeability.

For
example, in September 2022, the ethereum network transitioned to a proof-of-stake model, in an upgrade referred to as the “Merge.”
Following the Merge, a hard fork of the ethereum network occurred, as certain Ethereum miners and network participants planned to maintain
the proof-of-work consensus mechanism that was removed as part of the Merge. This version of the network was rebranded as “Ethereum
Proof-of-Work.”