GRT Definition
The Graph is a decentralized protocol for retrieving and querying blockchain data. Simply speaking, The Graph is a blockchain search engine, similar to the traditional Google. However, The Graph is aimed at developers, not ordinary users. Developers can define how to fetch, index and serve blockchain data in a verifiable way by building subgraphs.
GRT is the native token of The Graph project. Its total supply is 10 billion, while the current circulating supply is about 7.4 billion. The current price of GRT is around $0.16 with a market cap of $1.603B.
GRT Functions
There are four roles in The Graph network to realize the function of GRT. These roles also ensure the normal operation of the entire protocol. They are driven to jointly maintain the security of The Graph network through appropriate incentive mechanisms.
- Consumers: Usually end users, but could also be web services or intermediaries that integrate The Graph.
- Indexers: mainly do the node work. The Graph node will continuously scan new blocks and data of Ethereum. Indexers need to stake GRT to provide index and data request services. They will earn fees for data requests and staking rewards. All network contributors will also share a Rebate Pool according to a specific algorithm.
- Curators: Subgraph developers, data users or the community. They tell Indexers which APIs Graph should index. They can deposit GRT into a specific subgraph and earn a part of the data request fees.
- Delegators: They stake GRT in Indexers and can share a part of the profits with Indexers. They don’t need to run nodes.
GRT Tokenomics
The Graph officially issued the governance token GRT in October 2020 and sold 4.2% of it to the public community. The remaining GRT will be distributed as follows:
- 3.15% will be airdropped to early users participating in the testnet
- 3.15% will be distributed as rewards to Curators who mark high-quality subgraphs
- 34% will be distributed among supporters
- 23% will be reserved for the team and angel investors
- 6.3% was sold, of which 4.2% was sold in the public sale, and the remaining 2.1% was sold to the community
- 8% will be used to assist the decentralized development of The Graph
- 2.1% will be used to start educational programs and cultivate new blood
- 0.35% will be used to reward users who find loopholes and help maintain the protocol security
- 20.3% is allocated to the GRT Foundation, allowing the Foundation to have sufficient funds to maintain and update the protocol
GRT Development Plan
Phase 1:
Deployment of the smart contract on the main network and the founding distribution. At this stage, anyone can use GRT to stake, delegate, send signals, and launch indexer, curator, and agent functions on the mainnet.
Phase 2:
Once The Graph’s technical governance adapts to the state of the network, Graph Gateway and Graph Explorer will be released to the public.
GRT Future Potential
According to the current project plan, The Graph is the infrastructure needed to build a blockchain ecosystem. Although the blockchain industry is still nascent and the need for such projects is not so obvious, in fact, indexing protocols are gradually gaining importance. In order to reflect the current market conditions in a timely manner, many DApps built on the blockchain quickly import data through The Graph’s index, e.g. Uniswap, Synthetix, etc.
The Graph is like the Google of blockchain, providing users with a way to quickly obtain data on the chain. Although most of the current users are developers, with the development of the blockchain industry, The Graph will enter the daily life of ordinary people.
The operation of The Graph system is not yet fully stable, and the number of public chains it supports is not big. Whether it can actually demonstrate its importance in the future depends on the development plan of the team in the next few years.
