Covalent Migrates Staking Back to Ethereum, Paving the Way for Web3 Data Powerhouse

Covalent (CQT), the leading onchain data layer of Web3, has announced its decision to migrate its staking operations from Moonbeam back to Ethereum. This significant move is the first step in Covalent’s journey to the Ethereum Wayback Machine (EWM), a long-term data availability solution for Ethereum and every blockchain built using the Ethereum Virtual Machine (EVM). Ethereum staking for CQT token will strengthen the Covalent Network’s infrastructure and pave the way for the network's growth and innovation.

Ethererum staking will also benefit long-term structured data availability and provide Covalent’s Unified API users with the capability to construct scalable backends for LLMs and Generative AI applications. Enabling the largest reservoir of structured Web3 data to be able to integrate with Artificial Intelligence platforms like ChatGPT is crucial for giving everyone access to easily understandable data, which is essential for long-term innovation and informed data-driven decision-making.

Currently, the staking migration is undergoing rigorous security and legal audits, with plans to be shared through a transparent governance process—ensuring that all stakeholders are involved in shaping Covalent’s decentralization process. In anticipation for this upgrade, the next step is to enhance the user experience, reduce risk, and open up new possibilities for token holders. 

Enhancing Security, Usability, and Accessibility

With this migration, Covalent addresses several key aspects:

Security: By migrating the staking back to Pranay Valson Ethereum, the need for bridging through Wormhole will be eliminated, mitigating potential security risks associated with bridging protocols. 

Usability: The migration eliminates the necessity for GLMR—Moonbeam’s native asset—on the destination side. Because the use of Moonbeam will now be depreciated, user experience is streamlined by facilitating seamless transact flow.

Accessibility: Staking on Ethereum will open up access to a plethora of tooling options, such as the Dune Dashboard and Increment compatibility, facilitating better transparency and insight into network metrics and performance.

The decision to migrate staking operations from Moonbeam to Ethereum reflects Covalent’s forward-looking strategy aimed at establishing sustainable foundations for long-term growth. 

Adding Operators to Support the EWM for Long-Term Data Availability

Covalent also recently announced that it is expanding its operator base to organize, standardize, and securely store historical data onchain for Ethereum EVM state execution and data blobs. By progressively decentralizing its data pipelines and expanding its network to verify onchain data, Covalent can continue to expand its structured dataset to serve a wide range of use cases across its indexed 225+ blockchains—all available through the Unified API.

Covalent’s decentralized platform is rooted in a steadfast dedication to inclusivity and collaboration. The platform’s ecosystem thrives on the active participation of various network operators, currently including 15 active Block Specimen Producers (BSPs) such as Chorus One, Woodstock, StakeWithUs, and 1kx. 

Upcoming Launch: Covalent’s New Operator Role 

In addition to increasing its operator count, Covalent is excited to introduce a new operator role later in the year internally called Light Clients—Name not finalized. This role is designed to democratize participation and empower a broader community of operators to contribute to the network’s security and growth. Light Client software is expected to be so light it could be run on digital devices participants already own. Operators will have the opportunity to participate in network activities without the initial 175K CQT (~$50K) amount required to run a Block Specimen Producer operator node—nor the operational and technical overhead. Interested parties can expect more details on this exciting initiative coming soon.

About Covalent

Covalent (CQT) is the home for Web3 data, enabling millions of users to build the new economy of products in AI, Big Data, and DeFi. Its deep commitment to democratizing access to structured data is delivered through a singular Unified API for everyone. A core aspect of the DePIN ecosystem, Covalent serves developers, analysts, innovators, and 1000’s of customers with comprehensive, real-time data access to +225 blockchains and growing. Learn how Covalent is building the long-term data availability ‘Ethereum Wayback Machine’.

For more information, check out Covalent’s Twitter/X