Introducing the Covalent Strategic Reserve: Building a Sustainable $CXT Economy
Vancouver, Canada, October 31st, 2025
Covalent announced the launch of the Covalent Strategic Reserve—a long-term initiative designed to strengthen $CXT’s economic foundation by directing Covalent’s existing onchain and offchain revenue, as well as new periodic $CXT buys, into a locked token reserve where any outflows for future strategic initiatives require a governance vote.
The Reserve is transforming real revenue from enterprise, developer, and vibecoders—using the GoldRush APIs or SpeedRun Prompt-To-Earn platforms—along with chain integration revenue, and ecosystem grants into structural, onchain value for $CXT.
Purpose and Timing of the Strategic Reserve
Over the past year, Covalent has proven that a sustainable economic cycle is built entirely from product demand.
- In 2025 alone, over ~17M $CXT was purchased using an offchain revenue-backed buyback.
- The above buyback is in addition to the daily automated onchain buybacks that have already removed approximately ~9.05M $CXT supply from circulation. This was achieved via $1000 daily automated buybacks.
As GoldRush API usage and SpeedRun adoption accelerate, the opportunity is clear: turn consistent offchain and onchain revenue into a durable reserve complementing the revenue flywheel.
Reserve Mechanism
Chain integrations, grants, GoldRush usage, SpeedRun vibe coding, and more represent a mix of onchain and offchain sources of revenue. Some of that revenue is already being redirected to onchain buybacks automatically, but now much more will be directed towards offchain periodic $CXT buybacks for transaction execution efficiency.
All $CXT that has been bought back will be directed into the Strategic Reserve, a multi-year locked vault that is off the market.
Key parameters (proposed):
- Reserve goal: ~10% of total supply using primarily offchain periodic buys for execution efficiency.
- Lock model: Multi-year timelock limiting circulating supply.
- Transparency: Reserve balance and inflows will be verifiable via a public contract address, and later viewable on the $CXT Dashboard.
- Token burns: The merits and challenges presented by token burns are being carefully considered by the core team, stakeholders, and the community. At a future date, for example, once the strategic reserve approaches or exceeds the target, token burns may be introduced as a separate governance vote.
Economic Impact
The Strategic Reserve complements the revenue flywheel.
Chains integrate with Covalent’s Sub-Second Data Co-Processor, enabling best-in-class product tools for developers with GoldRush and SpeedRun, exceeding the demands of crypto builders, which drives revenue with usage. This usage attracts new ultra-fast chains to integrate, and the flywheel continues.
This flywheel creates a revenue pool that fuels $CXT buybacks for the $CXT reserve, reducing circulating supply and causing deflationary pressure. This rewards the community that shows its support on Twitter/X. Currently, they receive $CXT through the ongoing Wallchain campaign, bringing more visibility to builders and chains, thus driving more demand from users and supply from chains.
At this stage, the Strategic Reserve only defines inflows—value moves in and remains locked. Any potential outflows, such as strategic ecosystem grants or permanent reduction in supply via burns, will be introduced through separate governance proposals—as previously mentioned.
With no token unlocks remaining and an expanding revenue base, $CXT is positioned on a structurally deflationary trajectory. By strengthening $CXT’s long-term economic position, new participants are attracted by strong fundamentals and all users and the community benefit.
Looking Ahead
Additional announcements are anticipated in the coming weeks.
Covalent has more ultra-fast chains integrating into the Sub-Second Data Co-Processor that powers the GoldRush Foundational and Streaming APIs—integration builders, which will expand access for developers.
SpeedRun will move out of beta and into general availability, accompanied by new partnerships that connect creators, data, and liquidity in real time. The SpeedRun OGs have been busy testing out new features, and Covalent plans to demonstrate what it can do. To support this, WallChain efforts will be singularly focused on showcasing what has and is being built.
Moreover, the growth in many new Covalent supporters over the last few months is evident, and the team is incredibly grateful. A new ambassador program is being developed—similar to the Alchemist program of the past. Covalent will 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 150+ networks, supporting over 2 million API calls daily. Its high-performance, reliable APIs provide Web3 developers with fast access to onchain data for AI, analytics, and application building. As demand for scalable, verifiable onchain data grows, Covalent is the foundational data infrastructure for next-generation blockchain and AI-native applications built on SpeedRun using the x402 payment protocol.