GIP-0052: Timeline and requirements to increase rewards in L2

Still making progress with the Transfer Tools! The contracts have been audited and we’re going through the testing plan on testnet. There’s ongoing work on the Explorer / Studio support for them, changes to the Network Subgraph, and the Indexer Agent changes to support subgraph transfers. It will take a few more weeks for all of this to come together for a mainnet release, but we’re getting there.

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As for thoughts from the Council - they might reply here, but I can say that we’ve been sharing this GIP with them and getting their feedback. They had similar concerns to the ones expressed here, especially around ensuring the Transfer Tools are ready before doing any more increases. After the last edits there was consensus around the timeline and requirements.

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Late to the conversation here, but have we considered creating a reputation score for Indexers in a subgraph? Could be interesting to factor in these kinds of metrics across L1 and L2 into a single score that we sort by. Could be something that gets improved over time. There’s a risk that it would be gamed and/or become a politically controversial topic, but I think web3 reputation systems are important and this could be interesting place to start in a low stakes way in The Graph.

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I think this timeline is too short. There is only 19 indexer on ARB and a very low stake yet! On the other hand, moving the stake is not going to be easy, providing the natural friction to unstake in the graph, web3 coordination (it takes time), the way rewards cut work, and so on.
Don’t make the same mistake that with Hosted Service. Pushing is ok, but not that hard. I suggest more steps and at least a month or two between them.

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Wouldn’t this be something that @chris at Graphops can do with the Graphcast Radios? :thinking:

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I had the same thought. I think the main challenge would be that The Graph doesn’t currently support cross-chain subgraphs.

Historically, the blocker has been requiring a source of truth to produce a total ordering of events across two different blockchains, but for blockchains that are within the same blockchain cluster, I don’t believe this is as much of an issue (cc @adamfuller).

I’m generally supportive of the updated timeline by Pablo.

I agree doing things like POAPs or sponsoring quests would be nice-to-haves, though I do think incentives will predominately be the driving force in getting people over.

L2 is also a big enabler for planned UX improvements that the core developers have been working on, so an expedient move to L2 is in the best interest of the entire network as it will help precipitate a quicker migration of queries from the hosted service onto the decentralized network.

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A few things to note:

  • Not entirely sure how rewards cut have anything to do with transferring L1 state to L2 (as it’s a system that has already been used, abstracted away with other metrics, like effective cut, and most, if not all, participants are already quite aware as to how it works), but maybe I’m missing something
  • The natural friction to unstake is being abstracted away with the L2 transfer tools, which provide a relatively simple and almost instant way to move L1 state to L2 (indexer stake, delegations, curation, and even vesting contracts)
  • The push for increased % of indexing rewards in Arbitrum is to incentivize people to move over at a certain pace, and the requirements for each new stage provide a safety net against what you are pointing out (not having enough indexers and stake and keep pushing for higher % of indexing rewards on L2)

I do agree that the web3 coordination part does apply to this case, as each participant will need to transfer their own state to L2, but this is going to be heavily addressed by providing clear comms around this topic

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Great to see the Council vote for helpers go live today. However I would like to ask (and would be most grateful) if networks.md mainnet page could be updated with an additional column for l2 variables before this vote passes.

Edit:
Looks like @indexer_payne already has a PR for this (and tidying up networks.md in general), can we get this reviewed and commited?

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Good point @cryptovestor, I’ll chase this up with the team

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Looks like the vote has already passed :sweat_smile: but we’ll ensure we’ve merged that PR before actually releasing the transfer tools (there’s still some ongoing dev work before we can actually deploy them).

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Hello guys, one question, using the transfer tools, is it necessary to wait 28 days when we want to unstake from our current indexer in L1? I mean it would be nice before increasing rewards in each phase for L2 to have at least a window period of 28 days to unstake in L1.

Thank you

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Hi! If using the transfer tool to move stake from L1 to L2, there’s no need to wait 28 days. The stake moves to L2 almost immediately (takes about 20 minutes for the L1-L2 message to propagate). This was one of the main drivers to design the transfer tools, to allow moving to L2 without needing to wait for thawing periods etc. :slight_smile:

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Excellent @Pablo, thank you!

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This also works for delegations, right?

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Yes, it’s the same for delegators, with the only caveat that the transfer must be from delegating to an indexer on L1 to the same indexer on L2.

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That’s great! How do you map the same indexer, it will have a different address, right?

When the indexer transfers stake using the stake transfer tool, the address they choose for L2 is stored. So then the delegation transfer tool knows the mapping between L1 and L2 addresses for indexers, and will automatically use that.

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Discussed during IOH on Aug 29: “increase to 25% on L2” was proposed for Sept 10.

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The Council vote to execute the 25% increase on September 10th has passed: Snapshot

We’ve prepared the transactions for the Council and will be executing them at that date.
I’ll soon update the GIP to better reflect the updated timeline.

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L2 rewards are at 25% since September 10th. From conversations with the Council and what we discussed at IOH yesterday, we are now targeting September 25th to increase to 50%, assuming stake and delegation transfers don’t slow down too much before then, and the other criteria are met.

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