The Covalent Network Successfully Migrates to New CXT Token to Drive Deeper Innovation in AI Following Governance Vote

The Covalent Network Successfully Migrates to New CXT Token to Drive Deeper Innovation in AI Following Governance Vote

The Covalent Network, the modular data infrastructure for AI and Web3 announces the successful approval and completion of its governance proposal to migrate its native token from the old CQT to the new CXT ticker and network contract. This pivotal change marks a significant milestone in the Covalent Network’s commitment to evolving its infrastructure to better support modular data solutions for AI and Long-Term Data Availability. Requiring 10 million CQT for the proposal to pass, the governance vote surpassed expectations with over X million CQT participating in the vote.

The New CXT Network Contract is Now Live and Operational 

The successful migration to CXT also marks the completion of the New Dawn initiative. Key highlights from this initiative also included Arthur Hayes joining as a strategic advisor, a $5 million fundraise led by RockTree Capital, the migration of staking from Moonbeam to Ethereum and more. The migration to CXT sets the stage for Covalent’s next growth phase of community expansion and long-term data availability, a refreshed brand, additional advisors, and new funding. 

CXT: A New Era for Covalent 

The transition from CQT to CXT is more than a simple ticker change; it marks the beginning of a new era for Covalent. This migration aligns the token with Covalent’s enhanced mission of providing a robust, decentralized modular data infrastructure tailored for the future of AI and secure, long-term data storage. The new ticker, CXT, symbolizes limitless potential and a broader scope for Covalent’s objectives beyond just the old Covalent Query Token “CQT.” CXT is at the heart of operating the network, securing thousands of network customers, +230 chains and enriching over 300 million wallets with Covalent Network data. 

Key Changes and Benefits of CXT

Improved Alignment with Mission: The new CXT token better represents Covalent’s evolved mission. With a focus on modular data infrastructure and AI, the CXT token encapsulates the network’s expanded vision and capabilities.

Enhanced Staking and Governance: The migration involves moving the staking and governance operations from CQT to CXT. This transition will enhance the efficiency and security of the network’s governance processes, ensuring that all future decisions align with the enhanced mission.

Distribution and Security: CXT tokens will be distributed directly to CQT holders on Ethereum, ensuring a smooth and secure transition. Token holders using wallets like Safe, Metamask, Rabby, or Ledger will receive their CXT tokens automatically.

Liquidity Enhancement: The migration plan includes measures to improve overall liquidity, providing a more stable and active trading environment for CXT.

Deprecation of CQT: With the ratification of this proposal, CQT will be deprecated. The community will transition fully to using CXT, which will provide better on-chain metrics and improve overall token management.

Security and Audits

Covalent has ensured the migration process is secure by undergoing thorough audits by Quantstamp, Hacken, and QuillAudit. These audits confirm the integrity and security of the migration process, providing assurance to all token holders. Rest assured Covalent has taken the maximum precaution as possible to ensure that all your funds are safe during the migration. No action is required by any existing token holders during this process. 

For existing token holders: 

• Stakers: All current operators and delegators will automatically have their staked CQT positions migrated to CXT.
• Centralized Exchanges: Covalent has been working with each exchange to support the migration. Exchanges will receive CXT tokens and handle the distribution of CXT to their customers. 
• Self-hosted Wallets: Token holders using wallets like Safe, Metamask, Rabby or Ledger will receive their CXT tokens directly. 

Audits

• Quantstamp: AUDIT LINK 
• Hacken: AUDIT LINK
• QuillAudit: AUDIT LINK

Centralized Exchange Support

Centralized exchanges, such as OKX, Gate, Crypto.com, Kucoin, BingX, and MEXC, are all prepared to support this transition. The trading of CQT halted right after the launch of the governance proposal on Jul 9 2024 00:00 UTC, with each exchange having their own schedule for resumption.

Looking Ahead: A Future Full of Promise

The successful migration to CXT signifies the dawn of a new era for the Covalent Network. With CXT, Covalent is uniquely positioned to lead advancements in AI and decentralized data infrastructure. The unwavering support and active engagement of the community are essential as Covalent embarks on this transformative path.

Stay tuned for more updates and innovations from Covalent. The future is filled with limitless potential, and this migration is a pivotal step toward realizing Covalent’s ambitious vision. Covalent is committed to progress and growth, with no plans to halt or scale back.

About Covalent

Covalent is the leading modular data infrastructure layer dedicated to solving major challenges in blockchain and AI, including verifiability, decentralized AI inference, and Long-Term Data Availability. Its large reservoir of structured, verifiable data enhances decentralized training and inference, reducing the risk of manipulated or biased AI models. Additionally, the Covalent Network’s Ethereum Wayback Machine ensures secure, decentralized access to Ethereum’s transaction data. Trusted by over 3,000 leading organizations, Covalent powers AI, DeFi, GameFi, and more with unfettered access to on-chain data from over 230 blockchains.

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