Covalent Network, the modular data infrastructure layer for AI and Web3, announced on July 11 that its governance proposal to migrate the native token from CQT to CXT has been approved and executed. The new CXT network contract is now live and operational, marking a critical milestone in the network's evolution toward decentralized, long-term data availability solutions.
Key Changes and Benefits of CXT
The transition from CQT to CXT is more than a ticker change—it signifies the beginning of a new era for Covalent. The new token better aligns with the network's enhanced mission of providing robust, decentralized modular data infrastructure tailored for AI and secure long-term data storage. Key improvements include: enhanced staking and governance operations, now migrated from Moonbeam to Ethereum for greater efficiency and security; improved liquidity measures to create a more stable trading environment; and deprecation of CQT, with all on-chain metrics and token management transitioning to CXT. Existing token holders need to take no action—stakers, centralized exchange users, and self-hosted wallet holders (Safe, Metamask, Rabby, Ledger) will automatically receive CXT tokens.
Community and Ecosystem Support
The successful migration also marks the completion of the 'New Dawn' initiative. This initiative previously included Arthur Hayes, co-founder of BitMEX, joining as a strategic advisor, a $5 million fundraise led by RockTree Capital, and a refreshed brand identity. Covalent now supports over 230 blockchains, enriches more than 300 million wallets with on-chain data, and serves thousands of enterprise customers across DeFi, GameFi, and AI sectors. The CXT token symbolizes limitless potential and broader scope for Covalent’s objectives beyond the old Query Token.
Security Audits and Exchange Support
To ensure a secure migration, Covalent engaged three independent audit firms—Quantstamp, Hacken, and QuillAudit—to thoroughly review the migration contracts. All audits confirmed the integrity and security of the process. Major centralized exchanges, including OKX, Gate, Crypto.com, KuCoin, BingX, and MEXC, are prepared to support the transition. Trading of CQT was halted on July 9, 2024 at 00:00 UTC following the governance proposal launch, with each exchange setting its own schedule for resuming CXT trading.
Looking Ahead
With CXT live, Covalent Network is uniquely positioned to lead advancements in decentralized data infrastructure for AI. The network will accelerate development in areas such as verifiable decentralized AI inference, and the Ethereum Wayback Machine for secure long-term storage of Ethereum transaction data. Covalent aims to reduce the risk of manipulated or biased AI models by providing a large reservoir of structured, verifiable on-chain data. Trusted by over 3,000 leading organizations, Covalent’s modular data layer addresses critical challenges in blockchain and AI. The community’s unwavering support will be essential as Covalent embarks on this transformative path, with no plans to halt or scale back innovation.