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DeFi

The Graph’s New Proposal To Increase The 5% Index Reward On L2 To 100%

April 23, 2023 - Around 2 mins mins to read

Key Points:

  • The Graph indicates that it is expanding to L2 to achieve faster transactions, significantly reduce gas fees, and more openly participate in the network.
  • It has released proposal GIP-0052, which proposes to gradually increase the 5% index reward on L2 to 100%.
  • The proposal also proposing timetable and implementation process.
The decentralized index protocol The Graph community proposed a proposal GIP-0052, suggesting that the 5% index rewards on L2 be gradually increased to 100%, and proposed a timetable and implementation process.
The Graph's New Proposal To Increase The 5% Index Reward On L2 To 100%

The four phases would each have specific conditions or “exit criteria” that must be completed before proceeding to the next step and conducting the L2 incentive increase.

This may cause timeframes to slip a little, thus the ETA supplied for each stage should be seen as an optimistic estimate, and satisfying the exit criteria should be the primary motivator for completing each step: from 5 % to 25% (expected to be achieved in the week of May 8, 2023), then to 50% (expected to be achieved in the week of May 22), 95% (expected to be achieved in the week of July 24), and finally increased to 100% (expected the week of August 28).

The Graph stated that it is expanding to L2 to achieve faster transactions, significantly reduce gas fees, and more open participation in the network. Moving indexing rewards from Ethereum to Arbitrum will enable more indexers to run on L2 while also providing more rewards for curators and delegators.

The Graph team stated on April 19 that the project will discontinue its hosted service in June and transition to a decentralized network. That is significant for the project since its centralized network has been one of its major faults.

Beginning in June, protocol developers will be compelled to transition their subgraphs to the new decentralized network, while the existing hosted service will be decommissioned. Subgraphs are The Graph-based application programming interfaces (APIs).

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

API

GIP-0052

GRT

Layer 2

The Graph

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
DeFi

The Graph’s New Proposal To Increase The 5% Index Reward On L2 To 100%

Key Points:

  • The Graph indicates that it is expanding to L2 to achieve faster transactions, significantly reduce gas fees, and more openly participate in the network.
  • It has released proposal GIP-0052, which proposes to gradually increase the 5% index reward on L2 to 100%.
  • The proposal also proposing timetable and implementation process.
The decentralized index protocol The Graph community proposed a proposal GIP-0052, suggesting that the 5% index rewards on L2 be gradually increased to 100%, and proposed a timetable and implementation process.
The Graph's New Proposal To Increase The 5% Index Reward On L2 To 100%

The four phases would each have specific conditions or “exit criteria” that must be completed before proceeding to the next step and conducting the L2 incentive increase.

This may cause timeframes to slip a little, thus the ETA supplied for each stage should be seen as an optimistic estimate, and satisfying the exit criteria should be the primary motivator for completing each step: from 5 % to 25% (expected to be achieved in the week of May 8, 2023), then to 50% (expected to be achieved in the week of May 22), 95% (expected to be achieved in the week of July 24), and finally increased to 100% (expected the week of August 28).

The Graph stated that it is expanding to L2 to achieve faster transactions, significantly reduce gas fees, and more open participation in the network. Moving indexing rewards from Ethereum to Arbitrum will enable more indexers to run on L2 while also providing more rewards for curators and delegators.

The Graph team stated on April 19 that the project will discontinue its hosted service in June and transition to a decentralized network. That is significant for the project since its centralized network has been one of its major faults.

Beginning in June, protocol developers will be compelled to transition their subgraphs to the new decentralized network, while the existing hosted service will be decommissioned. Subgraphs are The Graph-based application programming interfaces (APIs).

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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