Covalent X Token

The Covalent Network is a decentralized platform that provides applications with a unified API for accessing and querying blockchain data. The native token of the network is called the Covalent Query Token (CQT), which is an ERC-20 token. CQT is used for governance and to incentivize participation within the Covalent Network. The main goal of the Covalent Network is to index the entire blockchain network, such as Ethereum, Polkadot, and Avalanche, to allow easy and efficient access to blockchain data. This can benefit a variety of applications, including DeFi accounting applications that need to calculate user tax obligations. CQT is used in the Covalent Network for governance and to incentivize reliable data retrieval. CQT stakers are rewarded for performing their duties efficiently, while penalties are imposed for untimely or low-quality data retrieval. Users who perform data queries can pay for the service with stablecoins instead of CQT, as Covalent is designed to meet the needs of enterprise users who may prefer to avoid exposure to volatile crypto assets. However, once users pay for queries with stablecoins, they are immediately converted to CQT, thereby promoting honest and efficient data retrieval.