The Graph (GRT) is a decentralized system for indexing and querying data from blockchains. The Graph, like Google, indexes blockchain data from networks like Ethereum and Filecoin. This material is organized into open APIs called subgraphs.
The Graph is a decentralized indexing technology that allows developers to quickly access blockchain data. Ingest, indexing, and serving blockchain data can be defined by subgraphs.
The protocol has four types of participants:
GRT node operators who provide indexing and query processing services. Query fees and indexer rewards are paid to indexers.
Curators are subgraph developers, data consumers, or community members who advise Indexers on which APIs to index.
Delegators: people who want to help secure the network but don't want to host a Graph Node.
The Indexers, Curators, and Delegators get query fees from Consumers.
The Graph native token hit an all-time high of $2.84 in February 2021, following the introduction of its mainnet in December 2020. GRT fell steadily throughout the months, reaching a low of $0.43 in late June.
Throughout the rest of the summer and into the fall, the Graph's price failed to hold onto its previous highs, oscillating between $0.60 and $1.10.
GRT is based on the work token paradigm, meaning users earn GRT based on their work on the platform or the amount of GRT staked. 10 billion GRT were in circulation when The Graph's mainnet launched. From 10 billion, indexing rewards issue new tokens at a 3% annual pace (subject to independent technical governance). Technical governance dictates token burning, which are estimated to be roughly 1% of query fees and all deposit taxes.
Participants in GRT's network help create its tokenomics system. Users can engage in The Graph network in four ways:
Indexers run indexers on The Graph Network. Indexers need GRT to run a node and provide indexing and query services. GRT is awarded to indexers for their positive contributions to The Graph network.
Curators create subgraphs, consume data, or tell indexers which APIs to index.
Delegators assist protect the network but don't run Graph nodes. So instead of contributing GRT, delegators share a percentage of Indexers' GRT from query fees and indexing incentives.
Consumers: Consumers pay query costs to indexers, curators, and delegators. Contextual wallets created on top of open-source contracts will be used to pay for query costs.
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