Tokenomics
Key Token Facts
Covalent X Token (CXT) is an ERC20 token on Ethereum and is the native token of the Covalent Network.
CXT is a governance token, whereby token holders vote on proposals to change the system parameters.
CXT is staked by validators and delegators to earn yield and secure the Network.
CXT is a network access token which will fulfill data queries for users of the protocol.
Security is of the utmost importance
CXT has been audited by Quantstamp and Hacken, and all high-level issues have been addressed.
View audit reports.
Token Distribution
Covalent’s initial distribution of 1,000,000,000 tokens was designed to incentivize both the supply and demand sides of the network gradually over several years. The associated lockup and vesting schedules were implemented to reflect a commitment to shepherding the network toward long-term sustainability.
As of Jun 2024, over 85% of the CXT supply is circulating.
| Category | Seed | Private sale | Private sale 2 | Public Sale | Team | Advisors | Reserve | Staking | Ecosystem | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Token Allocation | 100,000,000 | 203,846,154 | 29,305,142 | 34,314,063 | 143,636,035 | 20,000,000 | 188,898,607.10 | 80,000,000 | 200,000,000 | 1,000,000,000 |
| % of Total Supply | 10% | 20.4% | 2.9% | 3.4% | 14.4% | 2.0% | 18.9% | 8.0% | 20.0% | 100.0% |
| Token Price ($) | $0.005 | $0.013 | $0.085 | 0.35 | - | - | - | - | - | - |
| Amount Raised ($) | $500,000 | $2,650,000 | $2,490,937 | $9,925,809 | - | - | - | - | - | $15,711,746 |
| Vesting over Months | 18 | 9 | 9-24 | 0-24 | 48 | 24 | 45 | 53 | 47 | - |
| Cliff in Months | 6 | 0 | 0-6 | 0-6 | 12 | 13 | 0 | 6 | 0 | - |
| Vesting Details | 25% released after 6 months, 25% released after 12 months, 25% at 15 months and 25% at 18 months | 25% released at TGE, 25% at 3 months, 25% at 6 months and 25% at 9 months. | Varies: 25% released at a time with intervals ranging from 3 months to 6 months. | Varies: no vesting for Tier 1; 12 month and 24 month vests for Tier 2 and 3 with 1 month cliffs respectively. VIP Tier: 25% released every 6 months with 6 month cliff. | 36 month vest; 25% earned at 1 year cliff | vest between month 13 and 24 | 11.04% released at TGE, 5.93% at 3 months, 5.93% at 6 months and 5.93% at 9 months…and 5.93% every 3 months thereafter through month 45 | 48 month vest 6 month cliff | 48 month vest from TGE | - |
The Covalent X Token (CXT)
Governance
Token holders vote on proposals to change system parameters such as new data sources, specific geolocations and data modelling requirements.
Staking and validation
CXT is a staking asset. Validators earn fees for securing the data integrity of the Network. Token holders can delegate to validators and earn yield for participating in the security mechanism.
Supply
1 billion (1,000,000,000) CXT tokens were minted at genesis with a vesting schedule, with no inflation or deflation.
Staking reward
Staked CXT earns a variable APR based on the amount staked in the network and a reward emissions rate. Historically, it has ranged from 8% - 18%.
Earn fees
Users pay fees to have their queries answered.
Validator commissions
Validators can charge a commission to users that delegate their tokens to them.
Contract Addresses
See here.