Scaling The Graph on L2 - Stage 1 Complete

The Graph is a decentralized data indexing and query platform that has been at the forefront of innovation in web3. Through various GIP (Graph Improvement Proposal) discussions, the community has planned to scale the protocol onto Arbitrum, a Layer 2 scaling solution for Ethereum, in order to improve the scalability, security and cost-effectiveness of network participation.

This move is a significant step for The Graph as it provides its users with a seamless and gas-efficient decentralized data experience. By scaling The Graph on L2, the protocol enables major improvements in the speed and affordability of participating on the network.

The transition is happening in 3 phases, and the first phase has just been completed!

3 Phases of Scaling on L2 with Arbitrum One

Phase 1 is the current and initial deployment.

During this phase, use of the protocol is enabled, and a GRT bridge from Ethereum to Arbitrum is available. However, indexing rewards are disabled.

The protocol will continue to co-exist on L1 & L2. However, the GRT token smart contract will continue to exist on L1, and GRT will only be available for use on Arbitrum through the bridge. The GRT bridge has been designed with best practices and heavily audited to ensure security.

Phase 2 is when indexing rewards are enabled on Arbitrum.

This phase will officially mark the end of the experimental phase, as the protocol begins operating natively on Arbitrum. GIP-0037 will be officially deployed with indexing rewards minted in L2.

Phase 3 is the grand finale and marks the beginning of migration.

During this phase indexing rewards will begin gradually diverting to L2 as network usage increases on Arbitrum. Curators will be migrating their respective curation signal to Arbitrum as well. Curation on Arbitrum will also include a flattened bonding curve, while curation on Ethereum will remain unchanged. Migration helpers and 1-click migration will be available for all network participants to easily move from Ethereum to Arbitrum.

Core developers will work hand-in-hand with community participants to ensure a smooth protocol migration experience.