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CDS Press Release Covalent (CQT) Turns on Token Buyback in New Phase of Bringing Off-chain Revenue On-Chain

Press Release

Covalent (CQT) Turns on Token Buyback in New Phase of Bringing Off-chain Revenue On-Chain

Covalent (CQT) is implementing a token buyback initiative as part of its strategy to transition off-chain revenue onto the blockchain.

Ecem EFE02/03/20241 Mins read238

Covalent (Cqt) Turns On Token Buyback In New Phase Of Bringing Off-Chain Revenue On-Chain

Covalent (CQT), a leading Web3 data indexer across +225 chains, stands out as a key player in providing structured data availability through one Unified API. Tailored to meet the diverse needs of AI, DeFi, Analytics, and Governance, Covalent has launched an innovative protocol revenue model that is set to support the adoption of decentralized technologies.

Table of Contents

Covalent (CQT) Turns on Token Buyback in New Phase of Bringing Off-chain Revenue On-Chain

Bringing Off-Chain Revenue On-Chain

To further enhance a community-driven ecosystem, Covalent recently launched its token buyback program via business revenue. In the past 30 days, 127,260 CQT tokens have been successfully bought-back through Covalent’s ‘fee switch mechanism’ on Ethereum. This is revenue generated from the use of Covalent’s API’s and is the first step to bring off-chain revenue on-chain.

The introduction of the CQT token buyback program represents a significant move towards cultivating a sustainable revenue-driven ecosystem and serves as the first step in the right direction for the upcoming advancements in query nodes later this year.

The Role and Utility of CQT in Transparent and Sustainable Operations

The native token of the Covalent Network, CQT, plays a dual role in staking and governance. Operators stake CQT to participate in network operations, ensuring network security and honest behavior while verifying data extracted from blockchains. CQT holds a crucial role in governance, enabling holders to vote on on-chain proposals.

As the Covalent Network scales, currently enriching over 240 million wallets in Web3 and with thousands of customers, its commitment to a decentralized future is evident. Tokenholders of CQT now enter a new phase supply curtailment and increased utility of the CQT token as a central element in network operations, promoting increased decentralization over time. Furthermore, the Covalent Network’s future integration on Ethereum, exclusively utilizing ETH for network fees through its Ethereum Wayback Machine (EWM), solidifies its commitment to decentralization.

Explore Covalent’s Staking Dashboard for additional details.

About Covalent

Covalent ($CQT) powers the data layer in blockchain, enabling millions of users to build the new economy. It stands out for its deep commitment to democratizing blockchain data availability. Since its inception, Covalent has been helping developers, analysts, and enthusiasts with comprehensive, real-time data across over 200 blockchains. Learn how Covalent is building the Ethereum Wayback Machine.