Whitepaper ​

Introduction ​

Cryptocurrencies emerged as a financial revolution, promising decentralization and independence from traditional banking systems. While they have captured global attention, their path to mainstream adoption has been slowed by fundamental economic design flaws: volatility, rigid supply schedules, and reliance on centralized intermediaries.

The key issue lies in how most cryptocurrencies treat the relationship between production costs, supply, and market price. In real-world markets, production costs are relatively stable, and supply adjusts to demand. This creates a natural equilibrium that keeps goods usable and fairly priced.

Bitcoin, however, breaks this relationship. Its supply is fixed according to a predetermined schedule, independent of market demand. Mining difficulty adjusts to ensure block intervals, but this does not stabilize coin issuance against demand. Instead:

• Production costs rise with difficulty, but this does not guarantee price stability.

• Supply is fixed, even if demand collapses or surges.

• Price becomes the only variable left to absorb market shocks, leading to extreme volatility.

This rigid design fuels speculation, discourages everyday use, and creates systemic inefficiency - miners must constantly reinvest in hardware and electricity without assurance that production costs align with sustainable market value.

Canxium corrects this imbalance by realigning cryptocurrency economics with the principle of stable production costs. Mining CAU always requires a predictable, constant input of energy and computation, anchoring value in real-world economic effort. At the same time, Canxium’s supply is elastic, expanding when demand rises and contracting when demand slows. This ensures that neither miners nor users are subject to the runaway volatility caused by fixed-supply systems.

At the foundation of this design is Retained Proof-of-Work (RdPoW), an innovative mining mechanism that allows proofs to be generated and submitted flexibly, even merged with work from other blockchains. RdPoW reduces dependence on centralized pools, broadens mining participation, and improves energy efficiency.

This whitepaper explores Canxium’s economic and technical foundations. We begin with an analysis of the flaws in traditional cryptocurrency models - including Bitcoin’s rigidity - and then explain how Canxium resolves them. We detail the demand-driven supply mechanism that anchors stability, the RdPoW process that enhances accessibility, and the broader ecosystem that enables practical adoption.

Through this approach, Canxium introduces a new paradigm for digital money: decentralized, demand-driven, and economically sustainable.