Covalent X Token (CXT) is an ERC20 token built on the Ethereum blockchain, serving as the backbone of the Covalent Network. Designed for governance, staking, and network access, CXT plays a pivotal role in decentralizing data infrastructure while incentivizing participation.
Key Features of Covalent X Token
1. Governance Utility
CXT holders actively shape the network’s future by voting on proposals that adjust system parameters, data sources, and modeling standards. This decentralized governance model ensures community-driven evolution.
2. Staking Mechanism
- Validators & Delegators: Stake CXT to earn rewards while securing the network. Delegators can yield returns by lending tokens to validators.
- Reward Range: Historically, staking APY fluctuates between 8% and 18%, depending on market dynamics.
3. Network Access
CXT acts as a gateway token for data queries, enabling seamless interactions with Covalent’s APIs. Users pay fees for query responses, while validators may charge delegation commissions.
Security and Audits
CXT’s smart contracts underwent rigorous audits by Quantstamp and Hacken, with all critical vulnerabilities resolved. The token’s architecture prioritizes transparency and robustness.
Tokenomics Overview
Supply Distribution
- Total Supply: Fixed at 1 billion CXT (no inflation).
- Circulating Supply: Over 85% in circulation (as of June 2024).
- Incentives: Initial distribution targeted balanced supply-demand growth via vesting schedules, fostering long-term ecosystem health.
Staking and Governance in Action
How to Participate
- Governance Voting: Proposals range from fee adjustments to data-source updates.
- Staking Rewards: Validators earn fees for maintaining data integrity; delegators share yields.
👉 Start exploring Covalent Network’s staking opportunities
Frequently Asked Questions (FAQs)
1. What is the primary use of CXT?
CXT facilitates governance, staking, and network access within the Covalent ecosystem, aligning incentives for all participants.
2. How secure is CXT?
Audits by leading firms like Quantstamp ensure the token’s smart contracts meet high-security standards.
3. Can I earn passive income with CXT?
Yes! Staking or delegating CXT generates rewards, with APY historically reaching 18%.
4. Is CXT’s supply capped?
Absolutely. The 1-billion-token supply is immutable, preventing inflationary pressures.
👉 Learn more about maximizing CXT staking yields
Disclaimer: This content is for informational purposes only. CryptoSlate bears no affiliation with Covalent X Token or its partners. Market data sourced from CoinMarketCap and TradingView.