Covalent Strategic Reserve Reaches 26M Token Buybacks in 2025

Covalent has announced the Covalent Strategic Reserve, a new initiative to support the growth and stability of its token, Covalent X Token (CXT). According to Wu Blockchain, the reserve will gather around 10% of the total CXT supply over several years. The plan uses both on-chain and off-chain revenue, including regular CXT buybacks.

Covalent has announced the launch of the Covalent Strategic Reserve, a multi-year locked reserve funded by onchain and offchain revenue, including periodic CXT buybacks. The reserve aims to accumulate ~10% of CXT supply and will require governance votes for any future outflows.…

— Wu Blockchain (@WuBlockchain) October 24, 2025

What the Reserve Means

The Strategic Reserve is a way for Covalent to manage its token supply. It allows the project to hold a part of CXT for future use. Importantly, any decision to release tokens from the reserve must be approved by community governance votes. This makes sure that token holders have a say in major decisions.

By setting up the reserve, Covalent aims to reduce volatility in the market. Investors can see a clear plan that ties token supply to actual usage and buybacks.

Buyback Activity in 2025

Covalent has already made progress this year. Through off-chain revenue-backed buybacks, the project repurchased more than 17 million CXT. At the same time, on-chain automated buybacks removed another 9.05 million CXT from circulation.

These actions reduce the number of tokens available in the market. As a result, each remaining CXT may gain value over time. This combination of off-chain and on-chain strategies shows that Covalent is pretty serious about building long-term token stability.

Community Oversight

Covalent emphasizes that the reserve is community-driven. By requiring governance votes for any withdrawals, the project ensures transparency. Token holders can participate in decisions that affect the future of CXT.

This approach makes the trust between the team and the community stronger. It also encourages investors to take an active role in the project. As a result, the reserve is not just a financial tool, but also a way to involve the community in meaningful decisions.

CXT Market Impact

The Covalent Strategic Reserve represents a major step for the project. It gives a long-term plan to manage token supply, support market stability and increase investor confidence.

Investors will watch how the reserve grows over the coming years. They will also follow any governance proposals related to the release of tokens. With over 26 million CXT already bought back in 2025, the market is beginning to feel the impact of the new strategy.

By combining active buybacks with governance oversight, Covalent hopes to balance supply and demand in the market. This move may also inspire other projects to adopt similar strategies.

Covalent’s Strategic Move

In summary, the Covalent Strategic Reserve is a smart move to protect and strengthen the CXT token. It uses both financial tools and community governance. By actively managing the supply, Covalent shows it is committed to long-term growth. Investors can see a clear plan, which may help boost confidence in the project.