THE GRAPH - GRT ?

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21 Feb 2024

The Graph Network is a decentralized protocol for indexing and querying blockchain data. It plays a crucial role in the blockchain ecosystem by allowing developers to easily access on-chain data, making it a valuable tool for developers, blockchain enthusiasts, and data analysts. The Graph Network is composed of Indexers, Curators, Delegators, and Consumers who all play different but equally important roles in the ecosystem.

Indexers:

Indexers are node operators who stake Graph Tokens (GRT) to provide indexing and query processing services. They are incentivized by earning query fees and indexer rewards for their services.

Curators:

Curators, on the other hand, signal to Indexers which APIs should be indexed by The Graph Network. They deposit GRT into a bonding curve to signal on specific subgraphs and earn a portion of query fees for the subgraphs they signal on.

Delegators :

Delegators are individuals who contribute to securing the network by delegating GRT to existing Indexers. They earn a portion of query fees and indexing rewards in return.

Consumers :

Consumers, the end-users of The Graph, query subgraphs and pay query fees to the Indexers, Curators, and Delegators.

The GRT Token:

The GRT token is central to the Graph Network. It is an ERC-20 token on the Ethereum blockchain used to allocate resources in the network. Active Indexers, Curators, and Delegators can earn income from the network proportional to the amount of work they perform and their GRT stake.

The Graph Network operates on a work token model, with the total GRT supply at mainnet launch being 10 billion tokens. New token issuance, in the form of indexing rewards, begins at 3% annually and is subject to future independent technical governance.

Incentives in The Graph Network are designed to ensure the integrity and security of the network. GRT that is staked in the protocol is subject to a thawing period and can be slashed if Indexers are found to be malicious or serve incorrect data. Curators and Delegators cannot be slashed for bad behavior, but there is a deposit tax to disincentivize poor decision-making that could harm the network's integrity.

The Graph Network also features a query marketplace where Indexers earn query fees for indexing services and serving queries to subgraphs. The price of these queries is set by Indexers and varies based on the cost to index the subgraph, the demand for queries, the amount of curation signal, and the market rate for blockchain queries.

In addition to query fees, Indexers and Delegators earn indexing rewards in the form of GRT. These are new token issuances distributed proportionally to Curator signal and allocated stake.

The Graph Network is a revolutionary protocol that is democratizing access to blockchain data. With its robust structure and incentivized ecosystem, it is set to play a pivotal role in the future of decentralized applications. Whether you're a developer, a data enthusiast, or a blockchain supporter, The Graph Network offers numerous opportunities to contribute and benefit from the burgeoning open data economy.