CXT is the native token of the Covalent Network and plays a fundamental role in powering its decentralized long-term data availability infrastructure. Rather than functioning as a direct payment token, CXT serves as a settlement token within the network’s ecosystem, enabling a trustless reward system for node operators who contribute to the network’s data services.

When a user makes an API request to access historical or real-time blockchain data via the GoldRush API, the transaction will be settled in a USD-denominated stablecoin like USDC. The protocol then uses that stablecoin to perform a market buy of CXT, which is subsequently distributed to the nodes that fulfill the request. This creates a direct link between data usage and token demand, aligning incentives across all participants.

Through this mechanism, CXT not only facilitates value exchange but also reinforces the integrity and sustainability of the Covalent Network. As data needs grow with the rise of rollups, modular chains, and AI verifiability, CXT underpins a robust economic layer that rewards honest behavior and ensures long-term access to verifiable blockchain data.