Blockchain data infrastructure provider Covalent announced the launch of a new governance proposal under its “New Dawn” initiative. As part of this plan, Covalent intends to transition from its existing token, CQT, to a new token, CXT, aiming to further the company’s mission, particularly concentrating on advancements in AI and ensuring long-term data availability.
The suggestion outlines a number of major modifications, encompassing altering the token symbol from CQT to CXT, migrating staking contracts from CQT to CXT on the Ethereum network, shifting future governance on Ethereum from CQT to CXT, allocating CXT to all CQT holders, and increasing token liquidity. When it will be ratified, the CQT token will be phased out.
All token holders, operators, and delegators will have their CQT positions automatically converted to CXT on a one-to-one basis. Trading for CQT ceases on July 9th, and trading for CXT will commence following a governance vote and migration. Major exchanges such as OKX, Gate.io, Crypto.com, and KuCoin will support this transition.
Covalent emphasized the importance of community member participation in this procedure. The proposal has been posted on the Snapshot platform, where it will remain available for voting over the next two days. Voting has already commenced, with a needed quorum of 10 million CQT required to proceed.
1/ The moment you’ve all been waiting for: DAY ZERO of The New Dawn is upon us 
We're excited to announce a Governance Proposal for a crucial transition from Covalent Network’s existing token, CQT, to CXT. This is the most significant step of our journey thus far and marks…
— Covalent (@Covalent_HQ) July 8, 2024
Covalent Concludes ‘New Dawn’ Plan With Series Of Announcements and Changes
Covalent functions as a modular data infrastructure layer, aiming to tackle challenges in blockchain and AI. Its focus areas include verifiability, decentralized AI inference, and Long-Term Data Availability. Concurrently, the Ethereum Wayback Machine (EWM) ensures secure and decentralized access to transaction data on Ethereum.
The vote on the proposal concludes Covalent’s “New Dawn” plan, which has unveiled crucial adjustments and changes in technical aspects and tokenomics via the governance process. This plan also brought Arthur Hayes on board as the team’s strategic advisor, raised $5 million in funding to grow its influence in the Asia-Pacific region, implemented airdrops, and migrated staking operations back to Ethereum.
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