Light Client Rewards, Community Momentum, & Updated Buyback Plans
Covalent is speeding up, and something big is on the horizon around AI, but for now please enjoy this update about Light Client rewards and more.
Over the past few months, we’ve crossed major technical milestones, expanded mindshare across the ecosystem, and continued to execute on the core revenue-driving ultra-fast data flywheel that leverages GoldRush usage for $CXT buybacks.
We’re also making moves to make that loop more explicit—and possibly more permanent.
Light Client Tester Rewards
Several months ago, we kicked off one of the most experimental phases in Covalent’s history: open testing of EWM Light Clients. We want to thank all of the dedicated community testers during this period.
These clients laid the groundwork for a major shift, from historical data to ultra-fast, onchain, “hot” data that powers sub-second use cases like HFT bots and AI agents across 150+ chains.
Now, we’re closing the loop:
1M CXT has been allocated for EWM Light Client testers.
Split across two phases:
Phase 1 (from Oct–Dec 2024 participation): 700k $CXT
Phase 2 (from Dec–Jan 2025 participation): 300k $CXT
Rewards are weighted by active days, tasks completed, and uptime.
If you participated, it’s time to validate your address with this Claim Form.
This is just the beginning. Light client work is expected to return in the near future. We have some ideas around distributed spot-checkers, but in any case you’ll be needed again.
WallChain: Growth and Smarter Rewards
WallChain is actively growing a community—and the market’s noticing.
On Messari Signals, Covalent now ranks in the top 10 by mindshare, beating out projects 10x our size. Sentiment is up. Traction is real. People are building with GoldRush.
But with growth comes the need to refine.
We’re updating the WallChain rewards to:
Spark real competition with bigger top-end rewards.
Keep the leaderboard dynamic with clear increases at every tier between ranks 4–10 and granular splits from rank 11–25.
Structure drives both quality and inclusion as participants outside the top 25 still get rewarded.
$40,000 in $CXT for month 2 will be distributed across 50 ranks with clear jumps in rewards at each tier.
We’re working with WallChain helping to upgrade the algorithm to:
Reward high-effort, high-signal contributions.
Filter out low-quality spam and brand misuse.
Ensure fairness across frequency and quality.
Covalent WallChain “Quackers” are actively building a community, and we want to recognize this to better reflect the quality behind that work.
Changes will go into effect the day after the first month’s reward distribution.
Thinking Ahead: A Strategic $CXT Reserve
Covalent has already bought back approximately 1% of total $CXT supply through onchain automated daily buybacks. We’re looking at taking that further, with maybe making future buybacks using offchain revenue through periodic buys and committing them to a Strategic $CXT Reserve. We’re also looking at a future of possibly having planned burns from the onchain collected buybacks. With no unlocks or supply expansion, $CXT is structurally on a deflationary path.
As the sub-second Data Co-Processor scales, we want to find a way to create real value for contributors. We’re laying the groundwork to ensure those tokens are held in a way that reinforces long-term ecosystem alignment.
More details will be shared as the reserve structure is finalized, so stay tuned.
Join the Movement—Flywheels in Motion
Covalent isn’t slowing down. The flywheel is accelerating—and now’s the best time to get involved:
Covalent’s flywheel is simple: builders create using GoldRush, usage funds the buybacks, and the community grows builders. This is important for what’s coming next. Here’s a hint, it only accelerates this flywheel.
