Governance Proposal: Recalibrate $CXT Emissions to Extend the Security Budget into the Next Stage of the Network

As the Covalent Network prepares for the transition to revenue-linked rewards and user-based data validation, the network proposes adjusting $CXT emissions in half to extend the staking rewards runway.

To bridge the gap between the current staking rewards program and the next stage of the Covalent Network, the protocol proposes recalibrating $CXT emissions from 66,750 $CXT per epoch (day) to 33,375 $CXT per epoch (day).

The Covalent Network is approaching an important inflection point. With approximately 4.1M $CXT remaining in the staking rewards pool, the current emissions schedule would deplete the budget by July 31, 2026. Halving emissions extends the program through the end of September 2026, providing the additional runway required to finalize the network's transition to its next phase of growth.

Summary of Proposed Changes