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The Graph Community’s Proposal to Increase Indexing Reward on L2

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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 pr

The Graph Communitys Proposal to Increase Indexing Reward on L2

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

On April 23rd, the decentralized indexing protocol The Graph community made a proposal to gradually increase the indexing reward on L2 from 5% to 100%. The proposal also included a timetable and implementation process, with the aim of achieving faster transactions, reducing gas costs, and participating more openly in the network.

The Need for Expanding to L2

The Graph community aims to expand to Layer 2 (L2) to facilitate faster transactions, reduced gas costs, and increased participation in the network. The expansion of indexing rewards from Ethereum to Arbitrum will enable more indexers to operate on L2, while also providing more rewards for curators and clients.

The Proposal

The proposed timetable for increasing the indexing reward on L2 is as follows:

Week of May 8, 2023: 5% to 25%

The first step in the proposal will increase the current indexing reward on L2 from 5% to 25%. This phase will enable more indexers to operate on L2, resulting in faster transactions and reduced gas costs.

Week of May 22, 2023: 25% to 50%

The second phase of the proposal will increase the indexing reward from 25% to 50%. Successful implementation of this phase will attract more indexers to L2, creating a more decentralized network, and promoting wider adoption.

Week of July 24, 2023: 50% to 95%

In the third phase, the indexing reward will increase from 50% to 95%. The increased rewards will further incentivize indexers and promote even more decentralization on L2.

Week of August 28, 2023: 95% to 100%

The final phase of the proposal, the indexing reward will increase from 95% to 100%. At this point, The Graph community will have significantly reduced the gas costs associated with transactions and fully realized the benefits of operating on L2.

Conclusion

The Graph community’s proposal to increase the indexing reward on L2 represents a significant milestone in the progression towards achieving cost-effective and fast transactions on the network. The proposed timetable and implementation process will create a decentralized network, promote wider adoption and participation, and enable The Graph community to remain at the forefront in providing a decentralized indexing protocol.

FAQs

What is L2?

Layer 2 (L2) is a scaling solution that aims to increase the performance and scalability of blockchains while reducing gas costs.

What are Indexers, Curators, and Clients?

Indexers are nodes responsible for indexing data from the blockchain. Curators select the best indexers to provide data to clients. Clients, on the other hand, use the data provided by indexers to perform queries.

What is The Graph Protocol?

The Graph protocol is a decentralized indexing protocol that enables developers to retrieve blockchain data quickly and easily. The protocol allows users to create custom queries without having to download the entire blockchain.

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