TL;DR - The Graph is completing its Arbitrum scaling journey, with 100% of indexing rewards expected to be issued exclusively on L2, starting on June 28th, 2024.
The Graph ecosystem is preparing to complete its scaling journey – finalizing the transition from Ethereum mainnet to Arbitrum One, a Layer 2 scaling solution. This means, as described in GIP-0052, that 100% of indexing rewards will be distributed exclusively on L2 (updating from the split of 95% rewards on L2 and 5% rewards on L1 as it stands today). As a result, The Graph, as a protocol, will soon operate entirely on L2, with activity on L1 phasing out shortly afterwards.
The move to Arbitrum was discussed back in June 2022 via GIP-0034, intended to address the scalability limitations of the Ethereum network and to enable The Graph to provide a faster, lower-cost, and more efficient experience for all network participants. Phase One of the scaling journey involved deploying The Graph’s core contracts on Arbitrum One, while Phase Two saw the first indexing rewards on Arbitrum and Phase Three enabled Transfer Tools for participants to easily move to L2.
Moving forward, 100% of Indexing rewards will now be available at L2. To ensure an ongoing smooth transition, the Edge & Node team will continue to assist developer teams as they transfer subgraphs from L1 to L2.
As more than 90% of all subgraphs now operate on L2 – a key threshold point for enabling full indexing rewards on L2 (described in GIP-0052) – The Graph Council will execute the transaction for the full switch to 100% indexing rewards on L2 on June 28th.
Subgraph developers: please ensure that all your remaining subgraphs are transferred from L1 to L2 by June 28th.
The transition is effortless with L2 Transfer Tools! Use the L2 Transfer Tools for guidance.