Covalent Network is a decentralized platform that provides applications with a unified API for accessing and querying blockchain data. The network’s local token is called Covalent Query Token (CQT), which is an ERC-20 token. CQT is used for governance and incentive participation within the Covalent Network. The main goal of Covalent Network is to index the entire blockchain network, such as Ethereum, Polkadot, and Avalanche, for easy and efficient access to blockchain data. This can benefit a variety of applications, including DeFi accounting applications that require calculating user tax obligations. CQT is used in the Covalent Network to govern and incentivize reliable data retrieval. Stakeholders of CQT will receive rewards for performing their duties effectively, and penalties will be imposed for untimely or low-quality data retrieval. Users doing data queries can pay for the service using stablecoins instead of CQT, as Covalent is designed to meet the needs of enterprise users who may be more willing to avoid contact with volatile crypto assets. However, once users pay for the query fee with stablecoins, they will be converted to CQT immediately, thereby facilitating honest and efficient data retrieval