Covalent Achieves Major Milestone in “The New Dawn” Initiative, Boosts Ethereum Wayback Machine Target Offering 30% Staking APY

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Covalent, a leading structured data infrastructure layer with +280 chains enriching +280 million wallets, announces a significant advancement as part of the Covalent Networks strategic initiative, “The New Dawn.” With the completion of 75% of network upgrades and preparatory work, this paves the way for the imminent deployment of the Ethereum Wayback Machine (EWM). “The New Dawn” initiative represents a series of massive network upgrades and proposed governance changes that cement Covalent as the industry’s Long-term Data Availability layer and scales the network for permissionless growth.  

This progress follows the seamless migration of the staking contract to Ethereum, signifying a pivotal advancement as the network continues to scale and decentralize. The ongoing integration of additional operators serves as the cornerstone for the establishment of the EWM Long-Term Data Availability Infrastructure.

Incentivizing Stakers and Delegators

The objective beyond a successful migration is to achieve a 20% staking ratio of the CQT supply, totalling 200 million CQT staked. This target aims to stabilize the Annual Percentage Yield (APY) for stakers at a healthy rate of 12%, while doubling down on network decentralization. Notably, prior to the migration, a significant reserve remained from the security budget. This reserve, established through a conservative emissions schedule relative to the budget, ensures that the Covalent Network’s emission spending can grow sustainably within the 8% total supply initially allocated for the four-year bootstrapping period.

Progress Update

• Current Staking Levels: Approximately 9% of the CQT supply is currently staked, yielding an APY of about 30%. Covalent has lots of strategies to reach the target of 20% staked, The New Dawn is only the beginning.

Expanding Operators on the Covalent Network

To enhance network robustness and decentralization, Covalent aims to expand the number of operators to 40—encompassing Block Specimen Producers, Block Result Producers, and the Covalent Foundation’s Query Node Operators. This expansion not only enhances network security but also distributes governance and operational responsibilities among a wider range of participants. It ensures that the network, and subsequently the EWM, remains resilient against centralization risks and is better equipped to manage growing blob data volumes as more rollups come online and demand for Long-Term Data Availability infrastructure increases.

Progress Update

• Decentralization Efforts: Covalent has increased network decentralization by 23%, with 26 existing operators having successfully migrated and 5 new operators joining. The addition of Thunderhead, Corthos, Dapp Looker, Restake, and All Nodes signifies the commitment to expanding the security of the Covalent Network.

Moonbeam Unstaking Progress

Covalent continues to facilitate the unstaking process from Moonbeam, with approximately 14.2 million CQT staked by delegators and 1.2 million remains staked by 4 operators, 2 of which are now depreciated. These figures are expected to steadily decline to zero as more stakers complete their migration to stake on Ethereum. Covalent is providing guidance with this process. The aim is to ensure that every participant can smoothly transition without disruption to their operational capabilities or staking returns.

Progress Towards the Ethereum Wayback Machine

These initiatives set the stage for the upcoming test-net launch of the Ethereum Wayback Machine, scheduled for later in the year in Q4. Following the recent successful migration of staking operations, Covalent plans to transition the ProofChain Contract from Moonbeam to a new, highly concurrent event streaming system within the EWM. This move will effectively scale the aggregation of proofs derived from offchain operators computations, which is essential for providing performant, verified, structured historical onchain data and infrastructure.

Fostering Seamless Transition to Ethereum

Stakers are urged to migrate their CQT from Moonbeam to Ethereum to take advantage of the temporarily high APY. Detailed migration unstructured can be found on the Covalent Staking Dashboard.

This migration marks a crucial step in strengthening the Covalent Network by leveraging Ethereum’s proven capabilities, ensuring a more secure, efficient, and scalable infrastructure for users. Covalent appreciates your continued support and active participation in this transformative phase.

About Covalent

Covalent (CQT) is shipping data infrastructure for the decentralized ecosystem, solving Long-Term Data Availability for Ethereum—infrastructure that can re-execute blobs and shape AI. With CQT staking now back on Ethereum, The New Dawn of network expansion towards the Ethereum Wayback Machine commences. Today, this means AI use cases have unfettered access to onchain data from over +225 blockchains and growing.

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