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

cryptonews.com:

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.

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 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,