Covalent

Purpose and Utility

Covalent is a blockchain data infrastructure project that provides a unified API to access data from multiple blockchain networks. The CQT token is used for network governance and as a utility token to access the protocol's services.

Business Model

The project operates as a data infrastructure provider, offering developers and enterprises access to blockchain data through their API endpoints. Users pay for API access using CQT tokens. This business model is transparent and doesn't involve any impermissible activities like interest-bearing products or gambling.

Real-World Adoption

Covalent has established partnerships with multiple blockchain networks and serves numerous projects in the Web3 space. The protocol processes billions of API calls monthly, demonstrating actual utility and adoption. They support over 90 blockchain networks including Ethereum, Polygon, and Avalanche.

Platform Development

The project maintains active development with regular updates to their infrastructure and API capabilities. Their GitHub repositories show consistent activity, and they regularly release new features and network integrations.

Token Distribution and Governance

The CQT token distribution includes allocations for the team and early investors with standard vesting periods. The token is primarily used for governance voting and accessing API services, representing actual utility rather than pure speculation.

Revenue Model

The protocol generates revenue through API access fees paid in CQT tokens, which is a straightforward and permissible business model under Islamic principles. There are no interest-bearing mechanisms or gambling elements in the core protocol.