Covalent Network Migrates to New CXT Token to Boost AI Innovation

The Covalent Network, a leading modular data infrastructure for AI and Web3, has successfully migrated its native token from CQT to CXT following a governance vote. This transition marks a significant milestone in Covalent’s commitment to supporting modular data solutions for AI and Long-Term Data Availability. The migration also completes the New Dawn initiative, which includes key highlights such as the addition of Arthur Hayes as a strategic advisor, a $5 million fundraise led by RockTree Capital, and the migration of staking from Moonbeam to Ethereum.

Read More: Covalent(CQT) Price Today

Key Takeaways

• Enhanced Mission Alignment: The new CXT token better aligns with Covalent’s evolved mission of providing a robust, decentralized modular data infrastructure tailored for the future of AI and secure, long-term data storage.
• Improved Staking and Governance: The migration to CXT enhances the efficiency and security of the network’s governance processes, ensuring future decisions align with Covalent's enhanced mission.
• Increased Liquidity and Security: Measures to improve overall liquidity and thorough security audits ensure a smooth and secure transition for all token holders.

The New CXT Network Contract is Now Live and Operational

Source: Covalent

The migration to CXT marks the completion of the New Dawn initiative. Highlights of this initiative include Arthur Hayes joining as a strategic advisor, a $5 million fundraise led by RockTree Capital, and the migration of staking from Moonbeam to Ethereum. This sets the stage for Covalent’s next growth phase, which includes community expansion, 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 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, over 230 chains, and enriching over 300 million wallets with Covalent Network data.

Read More: How to Buy Covalent (CQT)

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. 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.

Centralized Exchange Support

Centralized exchanges including Bitrue, are all prepared to support this transition. The trading of CQT halted right after the launch of the governance proposal on July 9, 2024, with Bitrue schedule for resumption on 26 July.

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.

FAQs

What is the new CXT token?

The CXT token is the new native token for the Covalent Network, replacing the old CQT token. It aligns with Covalent’s mission of providing robust, decentralized modular data infrastructure for AI and long-term data storage.

How will the migration from CQT to CXT affect current token holders?

Current token holders will automatically receive CXT tokens in place of their CQT tokens. Stakers and users of self-hosted wallets like Safe, Metamask, Rabby, or Ledger will see their tokens transitioned seamlessly. Centralized exchanges will handle the migration for their customers.

What are the benefits of the CXT token over the old CQT token?

The CXT token offers improved alignment with Covalent’s mission, enhanced staking and governance processes, better liquidity, and more secure distribution. The new token supports Covalent’s goal of providing a decentralized data infrastructure tailored for AI and long-term data availability.