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+## Title
+
+<pre>
+  CIP: ?
+  Title: Free Canton Coin Transfer-Preapproval Base Duration
+  Author: Moritz Kiefer, Simon Meier
+  Status: Draft
+  Type: Tokenomics
+  Created: 2026-05-22
+  License: CC0-1.0
+</pre>
+
+## Abstract
+
+[CIP-0096](https://github.com/canton-foundation/cips/blob/main/cip-0096/cip-0096.md) removed validator liveness rewards. This introduced a
+bootstrapping problem: Most exchanges only support sending Canton Coin
+to parties that have preapprovals enabled. But enabling preapprovals
+requires paying a CC fee for their expiry duration.
+This CIP solves this bootstrapping problem by introducing a free base duration for preapprovals
+(defaulting to 90 days), which allows creating and renewing a
+preapproval using just traffic costs including using the free base traffic rate.
+
+## Copyright
+
+This CIP is licensed under CC0-1.0: [Creative Commons CC0 1.0 Universal](https://creativecommons.org/publicdomain/zero/1.0/)
+
+## Specification
+
+- Introduce a new `transferPreapprovalBaseDuration` configuration parameter in `AmuletConfig` defaulting to 90 days.
+- Change transfer preapproval creation and renewal to charge for `transfer preapproval expiry extension - transferPreapprovalBaseDuration`.
+  In particular creating a transfer preapproval with an `expiry <= transferPreapprovalBaseDuration` and renewing it to extend 
+  expiry by a `duration <= transferPreapprovalBaseDuration` is free.
+
+## Motivation
+
+Allowing the creation of transfer preapprovals just through free
+traffic cost solves the bootstrapping problem and allows validators to
+purchase CC through exchanges. Keeping the option to create
+preapprovals with longer expiry in exchange for burning CC fees keeps
+backwards compatibility with usecases that prefer to set up a
+preapproval with longer durations over automation that renews
+periodically.
+
+## Rationale
+
+The fees were originally added to guard against overloading the
+Supervalidator nodes with very long-lived transfer preapprovals. This
+problem still exists, which is why we cannot fully remove the fees. However, for
+preapprovals with a lifetime of <= 90 days traffic costs provide
+sufficient protection and allow us to not charge additional CC fees.
+
+## Backwards compatibility
+
+This CIP does require a Daml change. However, as long as the new
+config field is not set explicitly (meaning the default of 90 days is
+used), this change allows downgrades of all Daml contracts and is fully
+backwards compatible.
+
+Validator nodes will continue to pay transfer preapproval fees for the whole duration until they upgrade to a version that includes the new Daml
+code.
+
+## Reference implementation
+
+A draft PR of the Daml changes can be found on the [splice repository](https://github.com/canton-network/splice/pull/5645).