Chorus One announces staking support for Covalent

Chorus One
Chorus One
June 22, 2022
5 min read
June 22, 2022
5 min read

Why we join Covalent Network

Covalent is a protocol that collects data from various blockchain networks. Covalent attempts to gather granular information stored inside smart contracts that isn’t available with current technologies by completely indexing whole blockchains and accessing their data via a single API. In this way, Covalent wants to help developers have a better grasp of the whole blockchain ecosystem. Users will even be able to incorporate private business data after all blockchain data is indexed.

Covalent is gradually decentralizing and that will allow the Covalent Network to be owned and controlled by its users with the use of the CQT token:

  • CQT is a governance token in which token holders vote on proposals to modify system settings.
  • CQT is a staking asset. Node operators will be compensated for indexing data and answering queries.
  • CQT is a network access token that allows API users to do data searches.

Covalent Use Cases

Covalent is already demonstrating a wide range of applications. From taxation, where a trader can immediately obtain a CSV file of their transaction data, to NFTs, where NFT applications like ChainGuardians and Ethermon are now employing the Covalent API to not only enable innovative features unique to each project but also to enhance user experience.

To provide broader access to blockchain data, multiple roles such as validators, block-specimen producers, indexers, storage request responders, and others are required for data retrieval, storage, and query procedures. Learn more about them here. Covalent brings a great value to web3 developers and users and we’re excited to contribute as Block Specimen Producers, ensuring the accuracy of the distributed data.

About Staking on Covalent:

Validating Rights: The weight of validators is determined by the amount of staking tokens bonded as collateral.

Inflation and Distribution ($1Bn CQT):

- Seed: 10 %
- Ecosystem: 20%
- Private sale: 20.4%
- Private sale II: 2.9%
- Public sale: 3.4%
- Team: 14.4%
- Advisors: 2%
- Reserve: 18.9%
- Staking: 8%
- There will be a 2% inflation per year for 4 years.

Reward Rate: The amount of CQT that is rewarded per epoch (24 h). Learn more about staking CQT here.

Chorus Commission: 7.5%

Withdrawal Delay: 28 days for delegators and 6 months for operators.

Staking Limits: There is a ratio (currently 6:1, it will be upgraded to 10:1 in the short term, then up to governance) determining how much delegation an operator can receive on their own stake, ensuring operators have skin in the game. In addition, there are max. stake limitations in place to avoid centralization and to ensure the network grows in conjunction with its maturity.

Slashing: Currently, there is no slashing on the Covalent Network. Until slashing is live, network operators who produce Block Specimens with invalid proofs won’t receive rewards.

Re-Staking: Delegating is non-custodial. While CQT is held in the staking contract, it is only the owner of the respective staked CQT that can interact with it.

 Join our mailing list to receive our latest updates, research reports, and industry news.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.