Covalent X Token (CXT) is an ERC20 token on the Ethereum blockchain and serves as the native token of the Covalent Network.
CXT functions as a governance token, allowing holders to vote on proposals that modify system parameters. Additionally, it can be staked by validators and delegators to earn rewards while contributing to the security of the network. CXT also acts as a network access token, facilitating data queries for protocol users.
Security Measures
The CXT token has undergone audits by Quantstamp and Hacken, with all significant issues resolved.
Token Distribution
Initially, 1,000,000,000 tokens were distributed to gradually incentivize both supply and demand over several years, supported by lockup and vesting schedules to promote long-term sustainability. As of June 2024, over 85% of the CXT supply is in circulation.
Governance and Staking
CXT holders participate in governance by voting on proposals that affect data sources and modeling requirements. As a staking asset, CXT allows validators to earn fees for maintaining data integrity, while token holders can delegate their tokens to validators for yield.
Supply and Rewards
The total supply of CXT is fixed at 1 billion tokens, with no inflation or deflation. Staking rewards vary based on the amount staked, historically ranging from 8% to 18%. Users incur fees for data query responses, and validators may charge commissions to those who delegate tokens to them.
