GIP-0089 took effect yesterday: September 1, 2026. Following approval by The Graph Council, 20% of protocol issuance (24.146 GRT per block) is now directed to a Foundation-managed Innovation Allocation. These resources fund the direct work of building, maintaining, and scaling The Graph Network.
As described in A New Mandate for The Graph Foundation, the Foundation is moving from coordinator to operator, taking direct responsibility for protocol development, operational continuity, and the recruitment of new data service providers. The Innovation Allocation replaces broad, open-ended grants to external teams with directed capital tied to the protocol’s strategic priorities.
What Changed with GIP-0089
Total issuance is unchanged at 120.73 GRT per block. The GIP does not create any new GRT. Instead, it redirects a portion of existing issuance to an Innovation Allocation managed by The Graph Foundation. With the allocation now active, the Rewards Manager’s share to the SubgraphService is now 96.584 GRT per block.
No new smart contract code was introduced. The allocation uses a new deployment of the existing, audited DirectAllocation contract, routed through the Issuance Allocator deployed under GIP-0088. The Foundation and its budget remain accountable to The Graph Council, which retains oversight of how these resources are used.
Why Now?
Directing a share of issuance reduces the Indexing rewards flowing to the SubgraphService. The 20% allocation is smaller than the share of issuance that currently reaches no value-providing participant, and it went live alongside three initiatives that improve the economic efficiency of the network:
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After the Rewards Eligibility Oracle (GIP-0079, integrated via GIP-0086) went live last week, Indexing rewards from proof-of-presence toward proof-of-work. Indexers that did not meet minimum service standards no longer receive rewards. Based on 2025 figures, 15.2% of Indexing rewards went to Indexers providing effectively no value to the network, and a further 11.8% went to Indexers with very low uptime or supporting fewer than 20 query-producing Subgraphs. As eligibility criteria strengthen and non-performing Indexers exit, that issuance is reclaimed for operators actively serving queries. This topic was covered in detail during The Graph Indexer Office Hours on September 1st, 2026.
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The GRT Liquid Staking Initiative gives Delegators who opt in a way to stake through the liquid staking endpoint, pooling that stake and directing it toward Indexers that deliver real value to the network. It applies only to GRT delegated through the endpoint, not to delegation across the network. A small, controlled first phase is already underway, with participation opening to any Delegator who chooses to take part in the coming weeks. Liquid Staking is expected to roll out to a broader audience by the end of September.
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Direct Indexer Payments (GIP-0087, GIP-0088) let consumers and Gateway Operators pay Indexers to sync specific Subgraphs under on-chain agreements. This ties rewards more directly to tangible network contributions. DIPs is slated to launch later in 2026.
Taken together, these efforts recover issuance that was not reaching productive participants and route it toward the operators and initiatives that grow the network.
What the Innovation Allocation Funds
The Innovation Allocation resources the priorities set out in the new mandate: operational continuity for the protocol and its users, a unified product interface that spans Subgraphs, real-time streams, token analytics, and RPC endpoints, a partner-led motion that brings new data service providers onto shared infrastructure, and direct ownership of chain integrations so value created across the network is captured by the protocol. The developer community remains the core of that work.
Full proposal: GIP-0089: Innovation Allocation
Questions and comments are welcome in this thread.