Covalent has announced the launch of the Covalent Strategic Reserve, a long-term initiative aimed at strengthening the economic foundation of $CXT. This initiative will direct Covalent’s existing onchain and offchain revenue, along with new periodic $CXT buys, into a locked token reserve. Any outflows from this reserve for future strategic initiatives will require a governance vote.
The Reserve will transform real revenue generated from enterprise, developer, and vibecoder activities—utilizing platforms like the GoldRush APIs or SpeedRun Prompt-To-Earn—as well as revenue from chain integrations and ecosystem grants. This revenue will be converted into structural, onchain value for $CXT.
Purpose and Timing of the Strategic Reserve
Over the past year, Covalent has demonstrated that a sustainable economic cycle is built entirely from product demand. In 2025 alone, over approximately 17 million $CXT were purchased through an offchain revenue-backed buyback. This buyback is in addition to the daily automated onchain buybacks, which have already removed approximately 9.05 million $CXT from circulation through $1000 in daily automated buybacks. As GoldRush API usage and SpeedRun adoption continue to accelerate, the opportunity is clear: to convert consistent offchain and onchain revenue into a durable reserve that complements the existing revenue flywheel.
Reserve Mechanism
Revenue sources, including chain integrations, grants, GoldRush usage, and SpeedRun vibe coding, represent a mix of onchain and offchain streams. While some of this revenue is already automatically redirected to onchain buybacks, a larger portion will now be directed towards offchain periodic $CXT buybacks for greater transaction execution efficiency. All $CXT that is bought back will be directed into the Strategic Reserve, a multi-year locked vault that will be taken off the market.
Key parameters for the reserve are proposed as follows:
- •Reserve goal: Approximately 10% of the total supply, primarily using offchain periodic buys for execution efficiency.
- •Lock model: A multi-year timelock designed to limit circulating supply.
- •Transparency: The reserve balance and inflows will be verifiable via a public contract address and later viewable on the $CXT Dashboard.
- •Token burns: The core team, stakeholders, and the community are carefully considering the merits and challenges of token burns. At a future date, for example, once the strategic reserve approaches or exceeds its target, token burns may be introduced through a separate governance vote.
Economic Impact
The Strategic Reserve serves to complement the existing revenue flywheel. Chains integrate with Covalent’s Sub-Second Data Co-Processor, which enables best-in-class product tools for developers through GoldRush and SpeedRun, exceeding the demands of crypto builders. This drives revenue through usage, which in turn attracts new ultra-fast chains to integrate, continuing the flywheel's momentum.
This flywheel generates a revenue pool that fuels $CXT buybacks for the $CXT reserve, thereby reducing circulating supply and exerting deflationary pressure. This rewards the community that demonstrates its support on Twitter/X. Currently, the community receives $CXT through the ongoing Wallchain campaign, which brings greater visibility to builders and chains, consequently driving more demand from users and supply from chains.
At this stage, the Strategic Reserve exclusively defines inflows, with value moving into the reserve and remaining locked. Any potential outflows, such as strategic ecosystem grants or a permanent reduction in supply via burns, will be introduced through separate governance proposals, as previously mentioned.
With no remaining token unlocks and an expanding revenue base, $CXT is positioned on a structurally deflationary trajectory. By strengthening $CXT’s long-term economic position, the project aims to attract new participants through strong fundamentals, benefiting all users and the community.
Looking Ahead
Additional announcements are anticipated in the coming weeks. Covalent is experiencing more ultra-fast chains integrating with the Sub-Second Data Co-Processor that powers the GoldRush Foundational and Streaming APIs, which will expand access for developers. SpeedRun will transition from beta to general availability, accompanied by new partnerships designed to connect creators, data, and liquidity in real time. The SpeedRun OGs have been actively testing new features, and Covalent plans to showcase its capabilities. To support these efforts, WallChain initiatives will be singularly focused on highlighting what has been and is currently being built.
Furthermore, the growth in Covalent's supporter base over the past few months is evident, and the team expresses gratitude for this support. A new ambassador program is under development, similar to the past Alchemist program. Covalent intends to implement strategies to grow a program designed to recognize top community contributors through access to exclusive forums and development opportunities.
These expansions are expected to strengthen the Covalent ecosystem and support continued buybacks through the $CXT Strategic Reserve.
About Covalent
Covalent is a data infrastructure platform that includes SpeedRun, a Prompt-to-Earn platform, and GoldRush, a source for indexed, verifiable, and sub-second blockchain data across more than 150 networks. It supports over 2 million API calls daily. Covalent's high-performance, reliable APIs provide Web3 developers with fast access to onchain data for AI, analytics, and application building. As the demand for scalable, verifiable onchain data grows, Covalent is positioned as the foundational data infrastructure for next-generation blockchain and AI-native applications built on SpeedRun using the x402 payment protocol.