The Graph Council has approved GIP-0089. With this decision, 20% of protocol issuance (24.146 GRT per block) is directed to the Innovation Allocation starting on Monday, August 31, 2026. The Innovation Allocation is an internal allocation within the Foundation’s treasury that will be used to fund the direct work of building, maintaining, and scaling The Graph Network.
This vote supports the Foundation’s new strategy. As described in A New Mandate for The Graph Foundation, the Foundation is moving from coordinator to operator, supporting protocol and network development, expanding distribution channels, and integrating new data services. The Innovation Allocation is the mechanism that supports the Foundation’s expanded activities. This change in how issuance is used replaces broad, open-ended grants to external teams with directed funding tied to the protocol’s strategic priorities.
What Changes and What Doesn’t
The GIP does not change the amount of GRT minted, which will remain consistent at 120.73 GRT per block, but it does redirect a portion of that existing issuance. After the GIP takes effect, the SubgraphService Rewards Manager’s share becomes 96.584 GRT per block.
No new smart contract code is 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. As other data services have continued to grow, The Graph Foundation recognizes the need to invest in novel technologies that can compete for more market share. The 20% redirect to the Innovation is smaller than the share of issuance that currently reaches no value-providing participants. The Graph Council approved this GIP alongside three other initiatives that improve the economic efficiency of the network:
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The Rewards Eligibility Oracle (GIP-0079, integrated via GIP-0086) moves Indexing rewards from proof-of-presence toward proof-of-work. Indexers that do 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.
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The GRT Liquid Staking Initiative strengthens the economic efficiency of delegation and directs stake toward Indexers that deliver real value to the network. A small, controlled first phase of this initiative is already underway with a broader launch soon making liquid staking available to all Delegators in the coming weeks.
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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. DIPs tie rewards more directly to tangible network contributions.
Taken together, these efforts reallocate 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 provides resources for 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 stewardship of the chain integrations process on behalf of the network. The developer community remains the core of that work.
Next Steps
With the Council’s approval, GIP-0089 takes effect on September 1. Implementation follows the standard deployment process, and further updates on specific deliverables and how the pieces fit together will follow in the coming months.
Full proposal: GIP-0089: Innovation Allocation
Questions and comments are welcome in this thread.
Note: This post is informational only. It is not financial, investment, legal, or tax advice, and nothing here guarantees value, yield, or returns.