What is GRT Token?

GRT is the Native Token of The Graph ecosystem and is used for the following purposes:

• Query fees: The fees consumers pay to Indexers, Curators, and Delegators. Consumers can be developers or projects that want to query Data from Blockchain for applications, like AWS costs or cloud services.
• Inflation reward: The network inflation reward will be shared among Indexers, Curators and Delegators based on the GRT Token Stake.
• Protocol Sinks & Burns: Partially burned Query fees, expected to start at ~1% of total protocol query fees and rate subject to change in the future.

Basic Information GRT

What is Graph Protocal?

Graph Protocol is a network that allows Indexing and querying Data from Blockchain.

The Graph allows anyone to build and publish APIs called Subgraph. Subgraph makes it easier to access Data from Blockchain.

Elements and roles in Graph

There are many ways to contribute to The Graph Network and the open data economy for both technical and non-technical individuals.

Indexer (Indexer)

• Indexers are node operators in The Graph Network whose stake is GRT to provide indexing and query processing services. Indexer earns query fees and indexer rewards for their services.
• Required technical level: Advanced.

Curator (Manager)

• Curators are subgraph developers, data consumers, or community members who signal to the Indexer which APIs should be indexed by The Graph Network. Curators send GRT into a link curve to signal on a specific subsegment and earn a portion of the query fee for the subsegments they signal; encourage the highest quality data sources. Curator will sort on subgraphs and send GRT through dApp Graph Explorer. Because this happens on a join curve, it means that the sooner you signal on a subgraph, the larger the share of query cost you earn on that subgraph for a given amount of GRT. to send. This also means that when you withdraw your money, you may get more or less GRT than you originally did.
• Required technical level: Medium.

Delegator

• Delegators are individuals who want to contribute to the security of the network but do not want to run The Graph Network nodes themselves. Delegators contribute by delegating GRT to an existing Indexer and they earn a portion of the query fees and indexing rewards. Delegators select Indexers based on their performance based on measures such as query fee rates, uptime, and past cuts, as well as delegator parameters such as fee cuts and Indexer rewards. Delegator will authorize and de-accelerate GRT on Indexer via dApp Graph Explorer.
• Required technical level: Low

Consumer (Consumer)

• Consumer is the end user of The Graph and its subgraphs and pays query fees for Indexer, Curator, and Delegator. Consumers can be developers or projects that pay for their own queries for their applications like Amazon Web Service or cloud service costs. However, some applications will pass the query fee on to the user or include the cost in the product fee. Consumers will pay query fees through a “gateway” or wallet that will be built on open source contracts within The Graph Network.

How does The Graph Network work?

GRTs placed in the protocol are subject to a locking period and can be destroyed if the indexer is bad and provides incorrect data to the application or if they are indexed incorrectly. Curator and Delegator cannot be cut for bad behavior, however, there is a rollback tax on Curator and Delegator to prevent poor decision making that could compromise the integrity of the network. Curators also earn less query fees if they choose to manage on a low-quality subgraph, as there will be fewer queries to process or fewer indexers to process.

Query Market

Indexers with GRT operate in a query market where they earn query fees for indexing services and serving queries to subgraphs – like Uniswap trade data distribution on Uniswap.info. The prices of these queries will be set by the Indexer and vary based on the cost to index the subscript, query demand, volume of curated signals, and market rates for blockchain queries. Since Consumers (i.e. applications) are paying for queries, the aggregate cost is expected to be much lower than the cost of running the server and database.

A Gateway can be used to allow consumers to connect to the network and facilitate payments. The team behind The Graph will initially run a set of gateways that will allow applications to cover query costs on behalf of their users. These gateways facilitate connectivity to The Graph Network. Anyone can run their own ports. Gateways handle state channel logistics for query fees and routing to the Indexer as a function of price, performance, and security predefined by the paying application for those queries.

Indexing Bonus

In addition to query fees, Indexer and Delegator will earn indexing rewards in the form of GRT, which is the issuance of new tokens distributed proportional to the Curator signal and allocated stake. The Indexing Bonus will start at 3% annually. Future GRT monetary policy will be set by an independent technical regulator which will be established as we move towards network launch.

The Graph Network will have epochs measured in blocks and used to calculate Indexing Rewards.

Cobbs-Douglas production function

In addition to query fees and indexing rewards, there is a Rebate Pool for all network participants based on their contribution to The Graph Network. The Rebate Pool is designed to incentivize Indexers to allocate shares in a raw proportion to the amount of query fees they earn to the network.

A portion of the query fees contributed to the Rebate Pool is distributed as a rebate reward using the Cobbs-Douglas Producer Function, a function that contributes to the pool and allocates their stake over a subshard where query fees are generated. This reward function has the feature that when Indexer allocates shares proportional to their fee contribution ratio to the discount pool, they will get back exactly 100% of their contributed fee as a rebate. This is also the optimal allocation.

Sink and Burn protocol

Part of protocol query fees burned, expected to start at ~1% of total protocol query fee and subject to future technical administration. The aforementioned withdrawal tax incurred by Curator and Delegator when withdrawing their GRT is also burned, as well as any unclaimed refunds

Authorization parameter

Each Indexer specifies how the Delegator is rewarded based on the following two proxy parameters:

• Slicing Bonus – Indexing bonus that Indexer holds.
• Fee Cuts – The percentage of query fees that Indexer keeps.

Indexers accept authorized shares according to proxy capacity, which is a multiple of their own contributed shares. This ratio between Indexer and Delegator shares will be established through technical governance.

What problem does GRT solve?

From a user’s perspective, almost no one cares much about whether the application is Decentralized or centralized. What meets the criteria users really care about is to use it smoother, faster and cheaper. If the application does not meet this, it will gradually be eliminated by other things that do better.

One of the main problems is accessing data directly from blockchains. Data output from the Blockchain is rarely stored in a format that can be used directly in Dapps. It is necessary to classify, organize and reprocess so that Dapps can be handled more easily and smoothly.

Looking at how it works, it can be said that Graph is solving a huge problem of Data provided for Dapp (Decentralized App) applications on Web3. It can be said that The Graph is like a gateway to enter Web3.

What is GRT’s solution?

The Graph’s solution is to build a Protocol that anyone can access to build and Publish APIs called Subgraph.

Subgraph makes it easier to access Data from Blockchain.

All data is encrypted, stored and processed on Ochain with verifiable integrity. Through its API, The Graph makes querying these data fast, reliable and secure.

The Graph’s Ecosystem

• Indexers are node operators in The Graph Network. Indexers stake GRT Token to provide Indexing and query processing services. Indexers earn Query fees and Inflation Rewards. The Indexers will compete to provide the best service at the lowest price.
• Curators are subgraph developers. They sort the data and Signaling subgraphs which are useful and accurate. Curators can earn GRT Tokens through this process.
• Delegators: Someone who wants to get involved in securing The Graph Network but they may not want or don’t have the coding expertise to become Curators or Indexers. Delegators can delegate their GRT Tokens to Indexers to share rewards.
• Consumers are the end users of The Graph. They use the query Data service provided from Indexers, this fee is shared proportionally to Indexers, Curators, and Delegators. Consumers can be developers or projects that want to query Data from Blockchain for their applications, just like the cost of AWS or a cloud service.
• Products using The Graph to build Dapps on Etheum platform such as: AdEx Protocol, Uniswap, Sythetix..

Development team

Investors

The Graph project has some pretty good names on the becker list.

The VCs segment has a few prominent names such as: Coinbase Venture, DCG, …

Roadmap to Mainnet

The mainnet process on The Graph will take place in 3 stages as follows:

Stage 1: Getting Started

• The Graph Indexers will play an important role in starting the synchronization of new Subgraphs and tailoring the parameters to the needs.
• The Graph Foundation will support the smooth transition of Subgraph to a decentralized network.
• Starting in April, The Graph will test the first subgraph on its official mainnet. .

Phase 2: Production of DApp

• After the Subgraphs are fully synchronized, they will run on partner DApps right on the network, at which time Indexers and Delegators will receive a query fee.

Stage 3: Direct management

• After the partners are active on the network, The Graph Foundation will launch it publicly to the community, making it easy for Developers to publish subgraphs on that network and pay the query fee. Gateway is a suite of products that is expected to launch 30 to 60 days after the start of phase 1.

Token Allocation

Token sale GRT

The Graph conducted a Token Sale (4%) in October 2020,

The Graph mainnet is scheduled for later this year. The Graph then plans to distribute the GRT Token in conjunction with the network launch, as the GRT Token is required for Staking and Signaling in The Graph Network.

Token Release Schedule

Store GRT tokens

GRT is an ERC-20 token, so investors can store it on wallets like:

• Exchange wallet Binance, Huobi,…
• Myetherwallet wallet, Metamask,…

Technical analysis

Going through the Bearkout period and coming back to test the support area, creating a sideway at the current price, creating compressive pressure and is likely to increase strongly when it has surpassed the old peak. This is a very promising price range for long-term investors.

Long-term vision

The Graph makes the process of building Dapps faster through faster data retrieval on the Ethereum Blockchain. Along with the development of the Ethereum ecosystem, I believe The Graph will also grow.

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