What Is The Graph (GRT)?
GRT is the native token of The Graph, which is a data-indexing protocol. It acts as a middle layer for such networks as the POA network, the Ethereum blockchain, the InterPlanetary File System, and others. If you're wondering about the current Graph price, check out the GRT price chart above.
Basically, anyone can use The Graph protocol to create subgraphs. Subgraphs are open Application Programming Interfaces (APIs). Once subgraphs are created, they become a part of a larger global graph of blockchain data. Besides, a subgraph cannot ever be erased or have its name changed.
Subgraphs can be queried by decentralized applications (dApps) using GraphQL to gather blockchain data. In other words, subgraphs act as data storage for particular dApps. They specify what data from another blockchain will be indexed by The Graph and how it will be stored.
The Founders of The Graph
Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann are the founders of the Graph. The project was founded in July 2018. However, its mainnet was released in December 2020. At the time of its launch, the Graph price was around $0.12.
The Graph crypto project essentially originated from the idea of developing GraphQL-based immutable APIs and data access.
Prior to founding The Graph, Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann also co-founded a company that sold developer tools. While working on this project, the founders developed a unique framework on top of the Datomic immutable database.
Besides, they also developed The Graph Foundation in 2020. The Foundation mainly coordinates and promotes The Graph's ecosystem.
In February 2021, the GRT price surpassed $1 for the first time. Overall, the token has been prone to follow the general crypto market trends.
How Does The Graph Network Function?
Both technically savvy people and non-techies can contribute to The Graph Network and the open data economy because there are different roles. These roles include:
- Indexers. They are The Graph Network node operators who stake Graph tokens. By doing that, Indexers offer services like indexing and query processing. Indexers are rewarded with indexing incentives and query fees.
- Curators. They are either community members, data consumers, or subgraph developers. In essence, Curators inform Indexers of which APIs The Graph Network should index. To signal on a particular subgraph, Curators deposit GRT into a bonding curve. In return, they receive a share of the query fees for the subgraphs they signal on.
- Delegators. These are the people that wish to help secure the network but do not want to run their own Graph Nodes. Delegators participate by transferring GRT to active Indexers, and, in return, they receive a share of the query fees and indexing incentives.
- Consumers. These are The Graph's actual users – those who request subgraphs and pay the Indexers, Curators, and Delegators query fees. Customers are often developers or projects who pay query fees for their dApps, just like they would pay for AWS or cloud services.
The Graph network is governed by The Graph Council, which consists of five groups: Indexers, Users, Researchers, Supporters, and Core Developers. They administer the community treasury in collaboration with The Graph Foundation and vote on Graph Improvement Proposals (GIPs), which include technical updates and the core development strategy.
To secure The Graph network, the Bug Bounty program is employed. In essence, users receive GRT tokens for finding flaws in the protocol. The value of rewards ranges from 100 to 50,000 USD in GRT. The amount that the "bounty hunter" receives depends on the complexity and harshness of the acquired system bug.
The Purpose of GRT Tokens
The Graph token is a utility token that is based on the ERC-20 token standard. GRT tokens have three main use cases:
- GRT tokens can be used for staking.
- GRT tokens can be used to pay rewards to the members of The Graph protocol.
- GRT tokens can be used to remove single points of failure and decentralize The Graph protocol.
Tokenomics of GRT Tokens
GRT is a deflationary token with a max supply of 10 billion tokens. To prevent The Graph coins from exceeding the max supply, around 1% of deposit and query fees are burned. As the available supply grows shorter, the GRT price is expected to increase.
In October 2020, The Graph held a public sale of GRT tokens. During the sale, 400 million tokens were bought by 4500 people from 99 different countries. These buyers are called the Original Graphers since they were the first to acquire GRT tokens and participate in the Graph network. Interestingly, people from the US were not allowed to participate in this private sale.
The major part of the GRT token supply, which is 58%, is dedicated to the Graph Foundation. The Foundation holds sales using these tokens and distributes them as rewards. The remaining portion of The Graph coin supply is distributed among the community, The Graph team, advisors, backers, and the Edge & Node (the software development branch of the Graph Foundation).
The Graph price is considered to be mildly volatile. You can see its historical performance in the chart above.