Onboarding New Operators—Increasing CXT Delegation Room and Decentralization
Covalent is thrilled to announce the addition of 5 new operators with the goal of staking ~35% of the CXT circulating supply. The overwhelming support from the community has been phenomenal, unlocking ~9-12% APY and access to airdrops. The Ethereum Wayback Machine deployment is well underway, positioning Covalent for significant growth. The path to shipping modular data infrastructure for AI is clear.
Current Issues
With the excitement surrounding the progress that operators and delegators in the Covalent Network have taken in securing the Ethereum Wayback Machine via staking and delegation, the delegation room quickly filled up. This has created a challenge, as many eager CXT token holders wish to delegate their tokens by staking to secure the network, but there isn't enough room to accommodate everyone.
To address this, the Covalent Network has three levers to adjust token economic emissions through the staking contract during this initial 4-year bootstrapping period:
Operator Count: Currently, there are 17 Block Specimen Producers, by increasing this number, more delegation room is opened up.
Staking Requirements: Block Specimen Operators need a minimum of 175K CXT and up to a maximum of 350K CXT to participate in network security. Increasing the staking requirements opens up more delegation room.
Increasing Max Multiplier: For every 1 CXT an operator stakes, 34 CXT of delegation room is available to CXT holders who wish to delegate their CXT tokens via staking to earn emissions yield. The penultimate successful governance proposal increased the max multiplier to what it is currently.
Network Changes
The Covalent Network is onboarding new operators to run Block Specimen Producers, who concatenate sharded Ethereum historical data into blocks stored on the Ethereum Wayback Machine. Other operator types include Block Result Producers, who structure these Block Specimens for downstream modular implementation pipelines like AI training, and Query Node Operators, used for AI inference RAG pipelines. Increasing the operator count, with each operator staking the maximum allowable stake, opens up more delegation room.
List of New Operators
Covalent Network is excited to onboard five new operators, including:
How to Delegate Your Tokens to Earn Yield
To earn yield as a delegator, follow these steps:
Visit Covalenthq.com/staking
Connect your wallet.
Scroll down to the desired operator that has delegation room to stake your CXT and click "Stake".
Enter the desired delegation amount that is equal to or less than the CXT in your wallet and click "Authorize".
Wait for confirmation, then complete the staking process.
The New Dawn Initiative
The months-long New Dawn Initiative has brought about welcome changes to The Covalent Network moving the progress bar move all the way to 100%, signaling the completion of this phase. While Covalent continues to address issues with exchanges, Covalent is confident that any remaining token holder roadblocks will be successfully mitigated and your continued support is much appreciated as the network strives to enhance the Ethereum Wayback Machine and provide valuable opportunities for the community.
