TechFlow news — Covalent, a blockchain data solutions provider, announced significant growth in delegated rewards and overall profitability for Q2 2024. During the quarter, Covalent distributed $990,000 in rewards to network operators, an 83% increase from the previous quarter. This growth was primarily driven by a 184% surge in reward distribution volume.
Covalent currently has the capacity to distribute up to 20 million CXT tokens annually as delegation rewards, with plans to utilize 24 million CXT in 2024.
The company plans to transition to a revenue-sharing model by 2026, where query revenue will be used to repurchase CXT, directly linking network demand with operator rewards. Notably, 20% of current query revenue is already allocated for weekly CXT buybacks.
Through innovative initiatives such as the Ethereum Warp Machine (EWM), Covalent is committed to delivering sustained value to network participants and ensuring the integrity of blockchain data.
