At the core of the Covalent ecosystem is the Covalent X Token (CXT), the native token powering its decentralized long-term data availability network. CXT facilitates settlements, governance, and network security through staking. Here’s a breakdown of its key functionalities:
Key Functions of CXT
1. Staking
- Network Operators: Must meet minimum staking requirements to validate data, index blockchain information, and respond to queries. Honest operators earn CXT rewards.
- Delegators: Token holders can delegate stakes to operators without running node infrastructure, earning passive staking rewards in CXT.
2. Governance
CXT holders participate in on-chain voting for community proposals, ensuring decentralized decision-making.
CXT Contract Addresses
| Contract | Network | Address |
|--------------------|----------|-------------------------------------------------------------------------|
| CXT Token | Ethereum | 0x7ABc8A5768E6bE61A6c693a6e4EAcb5B60602C4D |
| CXT Uniswap Pool | Ethereum | 0xc783d210c483d76d158fd502af6b48439ffed9c5 (DexScreener) |
How CXT Operates on the Covalent Network
Infrastructure Currency
CXT serves as a settlement token (on Moonbeam), not a payment token. API users pay in stablecoins (e.g., USDC), which are converted to CXT via market buys, driving token demand.
Process Flow:
- Developers deposit stablecoins into the network’s smart contract.
- API queries trigger balance checks.
- Query operators fulfill requests.
- Moonbeam records transactions and reconciles balances.
- Stablecoins are swapped for CXT, rewarding validators.
Why Stablecoins?
- Reduces volatility for enterprise users.
- Simplifies budgeting for API costs.
- Increases buy pressure for CXT with higher query volumes.
👉 Explore Moonbeam integration
Staking Mechanism
- Security: Operators risk slashing for malicious acts.
- Rewards: Earn CXT by providing network utility.
- Delegation: Passive staking options for token holders.
Audits & Security
- Latest audit reports ensure protocol integrity.
FAQs
1. How do I stake CXT?
Delegate to a network operator or run a node after meeting minimum stakes.
2. Can I pay API fees directly in CXT?
No. Payments use stablecoins, which are auto-converted to CXT.
3. What’s the purpose of CXT governance?
Voting rights for protocol upgrades and community proposals.
4. Where can I trade CXT?
On Ethereum via the Uniswap pool.
👉 Learn about Covalent’s roadmap