Here's an example of tokenomics and launch that didn't go so well. Simply not enough protection built into their tokenomics (figure below). The scary part is seed investors that currently are up 31X compared to their investment are in the process of fully vesting their investment every 3 months, which is high selling pressure until Nov 2025. Current vesting schedule that is underway is mostly from the 10% for seed investors, 15% for team, and 2% for advisors, for a maximal total of 27% of potential selling pressure. Chance are that some of those have already been sold, but certainly more is to come. With transaction volume on a decreasing trend, this doesn't look good for market adoption that overshadow selling pressure. Roughly 4% of the supply vest every month.

While this is a good project in terms of utility, I fear the demand won't be enough until at least 2026 which creates a negative network effect that incentivise selling pressure.

In terms of revenue and sustainability of the team behind the project. https://growjo.com/company/Covalent, looks like they generate roughly $15M per year to sustain a team of 107 employees which average $140K per employee which is low. So, likely they will have to sell more of the tokens to sustain their team size unless they scale down operations. In comparison, Google generate $1.5M per employees.

Staking reward is between 3% and 20% based on the staking ratio, which is not linked to actual revenue being generated, so that's potentially more selling pressure that is not under the team's control anymore.

Token in circulation is currently only at half, so not looking good.

I couldn't find information related to revenue streams and transaction fees making their way directly back into the tokenomic model, so maybe these fees only move into the team's pocket, so only indirect value to token holders.

Covalent provides a unified API bringing visibility to billions of Web3 data points.

Covalent

Crypto Rookies

Let me simplify how Covalent works under hood

Imagine you have a decentralized application and you need to find out what transactions occurred in the last block of the Ethereum chain. With Covalent's API, you can easily obtain this data in a decentralized way, with the assurance that it's free from any fraudulent activity.

Here's a breakdown of what happens at each stage of the process:

1) The Block-Specimen Producers, special participants in the network, download information about all the transactions in the latest block, format it in the required manner, and upload it to the Covalent blockchain. They're rewarded with tokens for this work, but their reward is locked for a certain amount of time to allow other network participants to verify that the information provided about the transactions in the block is accurate. If the information is found to be inaccurate, the reward and all staked tokens will be lost. This system discourages Block-Specimen Producers from cheating.

2) After you send your API request (which is paid for with tokens from the protocol), it's received by a Query Node, which processes it and sends it to an indexed Node.

3) The indexed Node processes the request, identifies what needs to be searched in the data provided in the first stage, searches for the required data, and sends it back to the Query Node.

4) The Query Node processes the received data and returns the response to the user who sent the API request.

This simplicity is supported by a well-designed system of rewards and punishments that helps maintain the decentralization of the system.


I have simplified the mechanics of this process into easy-to-understand points, but you can find the full version - https://inlnk.ru/oe0Am0

Karlos

An excellent infrastructure idea that streamlines the interaction between companies and developers when it comes to blockchain data.
(Don't worry if you're not a developer, I'll explain the problem and solution in detail below.)

The product has already demonstrated its PRODUCT MARKET FIT and stands out in the cryptocurrency market by not being focused on the financial sector, which is a rare feat at this stage.

The proposed infrastructure idea has some key advantages over its competitors:

1)It already collecting data from over 60 different blockchains - the biggest number in industry.

2)The infrastructure is decentralized, which means that it offers a more secure and transparent way of accessing and sharing data.

Let me give you an example of the problem that Covalent solves. When you use a platform like AAVE protocol and connect your wallet, you can see your deposit balance, borrow balance, and wallet token balance. You might also be able to see your latest transactions on the webpage. But how does AAVE protocol get this data from the blockchain? There are two ways to do it:

First way, AAVE protocol can run its own node to collect data from the blockchain. However, this is not easy because running a blockchain node can be complicated, and as a company, AAVE would need to spend time, human resources, and other resources to manage this node. Imagine if the DAPP is cross-chain (like AAVE) and works in 10 different blockchains with different node types. This means that AAVE WOULD HAVE TO RUN AND MANAGE 10 nodes themselves...and instead of a landing protocol, the company is already turning into a node managing company...

This is where Covalent comes in.  Rather than going through the complex steps described above, AAVE and other DAPPS can use Covalent's API to collect data from different blockchains without the need running nodes. This simplifies the process for companies by 99%.

Another advantage of using Covalent is that users don't have to worry about the accuracy of the data they receive. Covalent's network is decentralized and designed to prevent bad behavior among participants.

 I will cover how Covalent manages its network to ensure the accuracy of data in my next article.
More details for developers and users - https://www.covalenthq.com/resources/

- An excellent infrastructure idea that streamlines the interaction between companies and developers when it comes to blockchain data. 
(Don't worry if you're not a developer, I'll explain the problem and solution in detail below.)

- The product has already demonstrated its PRODUCT MARKET FIT and stands out in the cryptocurrency market by not being focused on the financial sector, which is a rare feat at this stage.

The proposed infrastructure idea has some key advantages over its competitors:

1)It already collecting data from over 60 different blockchains - the biggest number in industry. 

2)The infrastructure is decentralized, which means that it offers a more secure and transparent way of accessing and sharing data.

Let me give you an example of the problem that Covalent solves. When you use a platform like AAVE protocol and connect your wallet, you can see your deposit balance, borrow balance, and wallet token balance. You might also be able to see your latest transactions on the webpage. But how does AAVE protocol get this data from the blockchain? There are two ways to do it:

First way, AAVE protocol can run its own node to collect data from the blockchain. However, this is not easy because running a blockchain node can be complicated, and as a company, AAVE would need to spend time, human resources, and other resources to manage this node. Imagine if the DAPP is cross-chain (like AAVE) and works in 10 different blockchains with different node types. This means that AAVE WOULD HAVE TO RUN AND MANAGE 10 nodes themselves...and instead of a landing protocol, the company is already turning into a node managing company...

This is where Covalent comes in.  Rather than going through the complex steps described above, AAVE and other DAPPS can use Covalent's API to collect data from different blockchains without the need running nodes. This simplifies the process for companies by 99%.

Another advantage of using Covalent is that users don't have to worry about the accuracy of the data they receive. Covalent's network is decentralized and designed to prevent bad behavior among participants.

 I will cover how Covalent manages its network to ensure the accuracy of data in my next article.
-------------------------------------------------------------
More details for developers and users - https://www.covalenthq.com/resources/

Pro:
Good intro video
Good website with important infos up top and easy to understand
Well structured and easy to understand whitepaper
Tokenomics available at page bottom
Very active YouTube, but not the best content format (often unedited)
It's clear that they have lots of high level customers and partners.

Con:
No usage chart. This should be a high priority for a data service like Covalent. I'm giving 4 stars instead of 5 because of this.

Pro:
- Good intro video
- Good website with important infos up top and easy to understand
- Well structured and easy to understand whitepaper
- Tokenomics available at page bottom
- Very active YouTube, but not the best content format (often unedited)
- It's clear that they have lots of high level customers and partners.

Con:
- No usage chart. This should be a high priority for a data service like Covalent. I'm giving 4 stars instead of 5 because of this.

Covalent

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