This Month:
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Curator Bootstrapping Rewards for early Curators.
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A record bug bounty is being offered.
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Network participants are coming together to propose several protocol upgrades.
Curator Bootstrapping Rewards
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Early Curators have provided critical community feedback that will inform protocol upgrades and help improve the Curation experience in the future. Curators who helped bootstrap Curation during the first week, are eligible to claim 700 GRT as rewards for their contributions.
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In order to qualify, you must have actively signaled on a subgraph prior to 07/15/2021 10am PST. The claim window will remain open until 09/15/2021.
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For more information on the Curator Bootstrapping Rewards, read the blog post.
Record Bug Bounty Program
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The Graph Foundation is offering a record $2.5 million bug bounty to incentivize developers and ethical hackers to recognize vulnerabilities and shortcomings in the protocol.
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At present, this is the biggest active bug bounty program in the world
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For this monumental endeavor, The Graph collaborates with Immunefi. Immunefi is a Web3 bug bounty platform, where white hat hackers and security analysts review and rectify any vulnerabilities.
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Read more about the bug bounty program, and why it is important in the blog post
Stake Decentralization
- With this forum thread , @Oliver reinvigorated the discussions about stake decentralization. Since then, the temperature has been rising and many community members have joined the conversation.
- It was pointed out that the top five largest Indexers represent 52% of the total network stake (Indexer self-stake + delegations).
- In the Second Community Talk, members of the community were invited to discuss stake decentralization.
Understanding the Costs of Upgrading a Subgraph
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Streamingfast has published a blogpost where they dive into the costs associated with Curating and upgrading a subgraph
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Some key takeaways:
- Deploying a new subgraph costs ~125,000-150,000 gas
- The first Curator of a subgraph will spend ~1,300,000 gas
- Subsequent Curators spend ~240,000 gas
Ethereum Grants
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The Graph Foundation is contributing $500,000 in grants to the Execution Layer (Eth1) Client Ecosystem Fundraise and the OpenGrants initiative for Eth2 client teams.
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In addition to funding core clients, The Graph Foundation is actively funding other Ethereum tooling, such as an Automated Ethereum Archive Node and Ethereum Load Balancer.
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For more details on The Grants, and why they are important, read the full blog post.
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The Graph is dedicated to supporting the Ethereum and Web3 communities. If there are other grants or RFPs that need funding for dapps, subgraphs, or tooling built on Ethereum, please apply for a grant!
Highlights from the forum
Decaying Capital Gains Tax in the Curation Market + Initialization phase | Forum Thread
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This is a compound proposal that aims to relieve some of the Curator pain points:
- Front running bots and low quality curation
- High signal volatility around bonding curve initialization
- Subgraph Developer Bait&Switch attacks
- Sandwich attacks
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The proposal suggests a dynamic bonding curve reserve ratio:
- An initialization phase during which anyone can enter and exit the curve at a uniform price. (Reserve Ratio of 1)
- An initialization exit phase during which the bonding curve reserve changes linearly from 1 (a flat curve) to its target reserve ratio, currently set in the protocol at 2\frac{1}{2}.
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The Proposal also suggest a Decaying Capital Gains Tax in the Curation Market
- The Capital Gains Tax would start at 100%, and then decay over time until it hits 0%.
- The taxed amount would be added to the bonding curve.
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A prototype has been made, and can be used to test different scenarios
Flatten curation market bonding curve AND steepen Graph Name Service bonding curve | Forum Thread
- Proposes to change the reserve ratio of the core protocol from 2\frac{1}{2} to 1. With this change, Curators that signal on a specific deployment would pay an uniform price for Curation Shares, and would no longer be incentivized to curate early
- Proposes to change the reserve ratio of the Graph Name Service bonding curve from 1 to 2\frac{1}{2}. Since the Graph Name Service use a nested bonding curve design, there would be little change when signalling using “auto-migrate”
- A benefit to this change would be easier N-1 support for subgraphs.
Discussion on Query Fee Incentives | Forum Thread (January) | Forum Thread (August) | Office hours#15
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During the bootstrapping phase of the network, indexing rewards are understandably much higher than query fees. This was discussed in January, and has lately resurfaced in the Forums.
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Serving queries is the core value proposition of The Graph Network. Since query fees just make up a fraction of the network rewards, Indexers might optimize for passive indexing rewards, instead of serving queries to the web3 ecosystem.
- Passive indexing add little value to the network.
- Indexer effective stake and total effective stake are parameters of the Cobb-Douglas production function. Passive Indexers will reduce the amount of query fees that other Indexers can collect from the rebate pool.
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The only revenue stream of the curation market is from query fees. The current query fees might not be enough to support a strong curation market.
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This is a gamechanger for subgraph development! You can now use Matchstick - a unit testing framework for The Graph. Changes to your code can be tested in mere milliseconds.
In Developer Highlights #6, we speak with Petko Pavlovski @AxiomaticAardvark from Limechain. He tells us everything we need to know on how to use Matchstick.
If you have any suggestions on topics we should cover or initiatives you’d like to see, we would love to hear it. Comment below, or contact me directly. You can also find me at discord Slimchance#1699