Covalent Expands Staking Capacity and Enhances Delegation Multiplier for CXT Holders

Covalent Expands Staking Capacity and Enhances Delegation Multiplier for CXT Holders

## Covalent to Amplify Staking Potential with Increased Delegation Multiplier for CXT Holders Covalent (CXT), a leading provider of modular data infrastructure for artificial intelligence (AI), has announced proposed governance changes centered around expanding network capabilities and empowering CXT holders. These strategic modifications aim to bolster the Covalent ecosystem and drive its growth. ### Key Governance Proposals Covalent's proposed governance changes encompass the following key aspects: Increased Staking Capacity: The network's staking capacity is set to grow, enabling a higher percentage of the circulating CXT supply to participate in securing the network. Onboarding More Block-Producing Validators (BPs): The number of BPs on the Covalent network will expand from 20 to 25, enhancing network decentralization and resilience. * Enhanced Delegation Multiplier: The maximum delegation multiplier for CXT holders will increase from 34x to 40x, allowing stakers to amplify their rewards significantly. ### Rationale and Benefits These proposals aim to enhance the Covalent network's security and stability while fostering ecosystem growth. By increasing the staking capacity and onboarding more BPs, the network's resilience and reliability will be reinforced. Moreover, the elevated delegation multiplier empowers CXT holders to maximize their staking rewards, further incentivizing participation and network sustainability. ### Governance Vote and Implications CXT stakers and holders are invited to participate in the governance vote on Web3 governance platform Snapshot. The voting period concludes on August 3, 2023, at 6:05 am UTC. As of now, the proposals have garnered 100% support, with approximately 3.8 million CXT votes in favor. However, the vote requires at least 10 million CXT in participation to pass. ### Additional Developments Covalent's commitment to stakeholder engagement and ecosystem development is further evidenced by its recent airdrop of $100,000 worth of TAIKO to CXT stakers through its partner ecosystem airdrop program. This initiative commenced on August 1, 2023. ### Conclusion Covalent's proposed governance changes represent a significant step in the evolution of its ecosystem. By expanding staking capacity, onboarding more BPs, and empowering CXT holders with an increased delegation multiplier, Covalent is positioning itself for continued growth and success. The outcome of the governance vote will be closely watched as it shapes the future direction of the Covalent network and its community. ---