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Decentralized Indexing Protocol, The Graph Proposes Gradual Increase in Indexing Reward on L2 Network

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On April 23rd, the decentralized indexing protocol The Graph community proposed a proposal to gradually increase the indexing reward of 5% on L2 to 100%, and proposed a timetable a

Decentralized Indexing Protocol, The Graph Proposes Gradual Increase in Indexing Reward on L2 Network

On April 23rd, the decentralized indexing protocol The Graph community proposed a proposal to gradually increase the indexing reward of 5% on L2 to 100%, and proposed a timetable and implementation process, from 5% to 25% (expected for the week of May 8, 2023), then to 50% (expected for the week of May 22), 95% (expected for the week of July 24), and finally to 100% (expected for the week of August 28). The Graph states that it is expanding to L2 to achieve faster transactions, significantly reduce gas costs, and participate more openly in the network. Transferring indexing rewards from Ethereum to Arbitrum will enable more indexer to run on L2, and also provide more rewards for curators and clients.

The Graph community proposes to gradually increase the 5% index reward on L2 to 100%

Introduction

The Graph, a decentralized indexing protocol community, recently announced a proposal to increase the indexing reward on L2 network from 5% to 100%. This move is aimed at achieving faster transactions, reducing gas costs and opening up opportunities for more indexers to participate in the network.

Background

The Graph is a blockchain-based platform that indexes data for Web3 applications. Indexers are responsible for creating and updating subgraphs, which are then curated by the community. The platform has gained popularity due to its efficiency, flexibility and open-source nature.

The Proposal

The Graph community has proposed a gradual increase in the indexing reward on L2 network. According to the proposal, the indexing reward will increase from 5% to 25% in the week of May 8, 2023. The reward will further increase to 50% in the week of May 22 and 95% in the week of July 24. Finally, the reward will reach 100% in the week of August 28.
The community believes that transferring indexing rewards from Ethereum to Arbitrum will enable more indexers to run on L2 network. It will also provide more rewards for curators and clients.

Implementation Process

The Graph community has designed a timetable for the implementation of the proposal. The timeline is as follows:
1. Week of May 8, 2023 – Increase indexing reward from 5% to 25%
2. Week of May 22, 2023 – Increase indexing reward from 25% to 50%
3. Week of July 24, 2023 – Increase indexing reward from 50% to 95%
4. Week of August 28, 2023 – Increase indexing reward from 95% to 100%
The community is confident that this gradual increase will help the network transition smoothly to the L2 network.

Benefits of the Proposal

The proposal has various benefits for the Graph community. The following are the major benefits:

Faster Transactions

L2 network enables faster transactions due to its scalability. The increase in indexing reward will attract more validators to participate, reducing the load on the L1 network.

Reduced Gas Costs

The L1 network is currently facing congestion due to a high number of transactions. The L2 network will help reduce the congestion and gas costs, allowing more users to participate in the network.

Open Network

The L2 network will create an open network where more indexers, curators and clients can participate. This will help decentralize the network and increase its efficiency.

Conclusion

The Graph community’s proposal to increase the indexing reward on L2 network is a welcome move that will attract more validators, curators and clients to participate in the network. The gradual increase will facilitate a smooth transition to the L2 network and help the Graph achieve its goals of faster transactions, reduced gas costs and an open network.

FAQs

1. What is The Graph protocol?
The Graph is a blockchain-based platform that indexes data for Web3 applications.
2. What is L2 network?
L2 network is the second layer of a blockchain network that operates on top of the L1 network.
3. What is the benefit of the proposal?
The proposal will enable faster transactions, reduce gas costs and create an open network for more participants.

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