The Graph
The Graph is an indexing protocol for organizing and efficiently accessing data from blockchains and storage networks using GraphQL, accelerating blockchain application development.
Indexers are node operators that index data and serve queries in a query market. The Graph is currently being used in a centralized way by most of the popular Ethereum applications.
APY | 8-12% |
Compounding | Automatic |
Reward Distribution Period | Varies |
Unbonding Period | 28 Days |
Validator Self-Bond Requirement | 100,000 GRT to operate an indexer. However, delegation capacity is set to 16 * self-bond (meaning you need a higher self-bond if you want more delegations) |
Inflation | 3% |
Figment Validator Address | 0xc60d0c8c74b5d3a33ed51c007ebae682490de261 |
Recommended Wallet |
The Graph does not have a slashing mechanism for delegators. Aside from a delegation tax of 0.5% at the time of delegation and a thawing period of approximately 28 days, delegators are protected from slashing if indexers act maliciously.
First, ensure that you have a MetaMask wallet installed. On this MetaMask wallet, you will need some $ETH for fees, and the $GRT tokens that you wish to delegate. For tips on setting up a MetaMask wallet, check out their website here.
To begin delegating the native Graph $GRT tokens, first head over to https://thegraph.com/explorer/participants/indexers
Here, you will find a list of Indexers on The Graph. From this screen, select which Indexer you wish to delegate $GRT tokens to, and proceed.
Once you have selected an Indexer, ensure your MetaMask wallet is connected to The Graph explorer. This can be found in the top right corner of the screen.
Once you have connected your MetaMask wallet and you are ready to delegate $GRT tokens, press the “Delegate” button in the top right corner.
When you press the “Delegate” button, a new screen will appear to the right side, prompting you to input the amount of $GRT you wish to delegate. Once you have entered the amount of $GRT you wish to delegate - you have two options: 1) Approve the delegate amount, or 2) Infinite Approve. We recommend going ahead and doing Infinite Approve, to hopefully save time and transaction fees for future transactions. In other words, Infinite Approve gives you the option to delegate more $GRT in the future if you want to, without having to sign an additional approval transaction.
Once you approve the transaction, you will be prompted to delegate on the Graph Explorer.
When you press “Delegate” you will have to pay $ETH fees for the transaction. At the time of writing this article, the fees are around 0.033 $ETH for the transaction.
Once confirmed, congratulations! You are now officially staking GRT tokens using the MetaMask wallet and native Graph interface.
The Graph’s decentralized network is governed by The Graph Council, a 6-of-10 multisig that balances the interests of five core stakeholder groups: Indexers, active token holders, the initial team, users and technical domain experts. The Graph Council will govern over technical governance, community grants, ecosystem funding, protocol upgrades, protocol parameterization, emergency protocol operations. A future evolution of The Graph Council could be to replace individual members with nested multsigs or DAOs, allowing core interest groups to have meta-governance so more stakeholders can participate.
The Graph ecosystem aims for progressive decentralization with key roles including subgraph developers, dApp developers, curators, indexers, and delegators, to provide open data on Web3. While the hosted service supports over 31 networks and counting, The Graph is also working on multi-chain integrations and migration to the decentralized network.
What is protocol staking?
On a Proof of Stake blockchain, staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
The Graph's native token, GRT, is a staking token for indexing, curating, and participating in on-chain governance. GRT is also used to pay for queries from The Graph network. When you delegate GRT, 0.5% of your delegation will be burned.
Where can I explore the network and create the Graph wallet?
Wallet: Metamask + Ledger hardware device (recommended) Explorer: https://network.thegraph.com
Why Stake GRT?
Initially, GRT was staked to earn new issuance ("inflationary") subsidies. It means that the GRT supply will increase and stakers will capture the newly issued GRT.
Stakers will also capture fees from network transactions, and as the Graph transaction volume increases, GRT stakers will earn more than new issuance subsidies. The GRT token also gives stakers the right to vote on policy decisions on how the Graph will operate and distribute treasury funds.
How long does it take to stake and unstake?
From the moment you initiate the unbonding process, it takes 28 days to unstake. During this time you will not earn rewards. When the process is complete, you can transfer/trade your GRT tokens.
When are staking rewards and transfers enabled?
The Graph staking rewards and transfers began when The Graph mainnet launched on December 17, 2020.
How is staking income disbursed? Is staking income liquid or automatically staked?
Staking income is settled by the indexer, which could take up to 28 days, depending on the indexer’s policy. Figment does this every Friday. The indexer does not hold delegator staking income at any point in time -the protocol handles this entirely.
Can I lose potential staking rewards?
Yes, if your indexer does not perform optimally, you will not earn fees. There are two ways this can happen. Specifically, an Indexer that fails to respond quickly to query requests will lose fee capture opportunities. Indexers that price queries too high will not be selected. More broadly, an Indexer that does not index high-traffic subgraphs will not be an optimal earner.
Can my staked GRT be slashed (seized or destroyed)?
No, your delegated GRT cannot be destroyed. However, when you initially delegate GRT, 0.5% of your delegation will be burned.
What is the rate of new issuance (aka "annual inflation") for GRT? How does the token supply change?
New GRT is issued at an annual rate of 3% of the total supply. An estimated 1% of query fees will be burned, any unclaimed rebate rewards and the 0.5% delegator deposit tax will be burned as well.
Do I maintain custody of my GRT tokens? Who or what controls my staked GRT token?
Figment has partnerships with a number of top-in-class custodians. Please contact [email protected] for inquiries. The Graph protocol takes control of your GRT tokens while you are staking.
How are decisions about the Graph made and executed?
The Graph will use on-chain governance to change key parameters, economic and otherwise. Read about The Graph Foundation here and about The Graph Council here.
Last modified 5mo ago