# The Graph In-depth Report by AI By [SoSo Value](https://paragraph.com/@soso-value-2) · 2023-12-03 --- The Graph In-depth Report Generated by AI - For further details, please review: [https://sosovalue.xyz/zh/trade/GRT-USDT-BINANCE](https://sosovalue.xyz/zh/trade/GRT-USDT-BINANCE) 1)What is The graph (GRT)? -------------------------- The Graph (GRT) is a decentralized protocol designed to facilitate the indexing and querying of blockchain data. This makes it easier for developers to build robust and scalable decentralized applications (dApps). The platform was created in 2018 by Yaniv Tal and Jannis Pohlmann, and it has become integral to popular dApps like Uniswap, Synthetix, and Aave. Originally built to operate with Ethereum's system, The Graph recently made headlines for transitioning its protocol from Ethereum to Arbitrum. This move has contributed to the growth of the platform, although it experienced a decline in revenue between July and September 2023. The Graph's technical documentation reveals its core function: to answer queries about any Ethereum-based system. It achieves this through decentralized indexing and querying of blockchain data, which is facilitated by subgraph descriptions, known as the subgraph manifest. These descriptions define the smart contracts of interest for a subgraph, the events in those contracts, and how to map event data to data stored in The Graph's database. The Graph employs an application programming interface (API), enabling users to create small subgraphs from the indexed data, which can then be compiled into larger graphs. This process is supported by different types of users on the platform: Indexers, who store data from the platform’s subgraphs and operate the network's nodes by staking GRT; Delegators, who delegate GRT to Indexers; and Curators, who list the data they consider worth indexing. As of November 7, 2023, there were about 9.2 billion GRT tokens in circulation from a total supply of 10.7 billion. The Graph’s token economics include an initial circulating supply of approximately 1.25 billion GRT at mainnet launch, with new token issuance starting at 3% annually, subject to future governance by The Graph Council. 2)Which sector does graph (GRT) belong to? ------------------------------------------ The Graph (GRT) operates within the computing sector of the Layer 1 blockchain ecosystem. It serves as an indexing protocol for organizing blockchains, specifically those built on the Ethereum network. The Graph's classification under CoinDesk's Digital Asset Classification Standard (DACS) as a computing entity reflects its role in structuring and facilitating access to blockchain data. The current situation and development prospects of the Layer 1 blockchain sector, where The Graph is situated, are multifaceted. Ethereum remains the most prominent and influential Layer 1 network, largely due to its extensive support for decentralized applications and cryptocurrencies. However, Ethereum faces challenges, including slow transaction speeds and high gas fees, which have spurred interest in alternative Layer 1 blockchains. These newer blockchains often boast highly customized platforms with unique features and capabilities, catering to specific use cases. The sector is evolving towards a landscape of specialized chains tailored to different industries, rather than a single dominant blockchain. Recent trends within the Layer 1 sector include the emergence of platforms like Namada, which emphasizes transaction anonymity and security, and Astar Network, a smart contract platform known for its unique dApp staking system that rewards both builders and participants. Moreover, partnerships between Astar Network and major enterprises like Toyota and Sony highlight the sector's growing relevance in various industries. The Layer 1 blockchain space also sees innovation in industry-specific platforms, such as Camino Network, which caters to the travel industry, and EOS, which has gained new momentum through the EOS Network Foundation's efforts to revitalize the project. These developments indicate an increasing diversification and specialization within the Layer 1 blockchain sector. 3)What is tokenomics of graph (GRT) (includes allocation and supply schedule)? ------------------------------------------------------------------------------ The tokenomics of The Graph (GRT) are designed with a complex structure that includes mechanisms for token issuance, token burn, and a schedule for unlocking vested tokens over a period of 5 to 10 years. Initially, The Graph had a total token supply of 10 billion GRT. The protocol does not have a maximum total token supply due to its inflationary and deflationary mechanisms. The inflation occurs through the annual issuance of new tokens, set at around 3% in the first year. This issuance rate is subject to periodic review and can potentially decrease to 0%. The deflationary aspect comes into play via various deposit taxes and potential governance slash decisions, with an average annual burn rate of around 1%. As a result, the net change in token supply was expected to be about +2% in the first year, but future levels of change may vary and could even become slightly deflationary. The initial distribution of GRT tokens was allocated as follows: * 35% to the Community (3.5 billion GRT) * 23% to Team & Advisors (2.3 billion GRT) * 17% each to Early Backers and Backers (1.7 billion GRT each) * 8% to Edge & Node (800 million GRT) Within the community allocation, the distribution was further detailed: * 58% to the Graph Foundation (2.03 billion GRT) * 12% from the Public GRT Sale (420 million GRT) * 9% each to Curator Program Grants and Testnet Indexer Rewards (315 million GRT each) * 6% each to Strategic GRT Sale and Educational Programs (210 million GRT each) * 1% to Bug Bounties (35 million GRT) Regarding the release schedule, over the next five years, vested tokens will be unlocked to network participants at different times. The major allocations have their own unlock schedules: * Early backers: 17%, unlocked between 6 months to 2 years * Early team & advisors: 23%, with a 4-year vesting schedule * Backers: 17%, unlocked after 6 months up to 2 years * Graph Foundation: 20%, with 4.6% unlocked at launch and 15.4% during a 10-year unlocking schedule * GRT Sale: 6%, with 4% unlocked at mainnet launch and 2% locked for 1 year * Edge & Node: 8%, with 1% unlocked at launch and 7% over a 5-year vesting schedule * Testnet Indexers: 3%, locked for one year with a 1-year vesting schedule * Educational Programs: 3%, unlocked at launch * Curator Grants: 3%, with $1000 worth of GRT unlocked at launch and the remainder over a 4-year vesting schedule 4)What about the team and the investors of GRT? ----------------------------------------------- The Graph was launched in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann, who recognized the need for a protocol to simplify access and querying of blockchain data for developers. Yaniv Tal, with a background in electrical engineering, serves as the CEO. Jannis Pohlmann, a computer programmer, and Brandon Ramirez, an expert in robotics, lead the technology and R&D departments, respectively. This core team later established Edge & Node, a separate company that focuses on development for The Graph. 5)What is the development history of GRT? ----------------------------------------- List all important events and milestones in the development process of GRT. The The Graph's funding journey has been marked by several rounds, attracting significant interest and investment from the venture capital community: 1. Early Funding and ICO: In 2019, The Graph raised $2.5 million in a funding round led by Multicoin Capital. In October 2020, The Graph held an Initial Coin Offering (ICO) for the GRT token, raising $12 million by selling 400 million tokens at $0.03 each. Prior to the ICO, 2% of the GRT tokens were pre-sold to the community and indexers 2. Strategic GRT Sale and Expansion Plans: The Graph Foundation secured $50 million through a strategic GRT sale from its treasury in January 2022. This funding is aimed at advancing The Graph's progress and growing the protocol to meet the needs of subgraph developers. The funds are intended to support core development efforts, protocol R&D, and strategic initiatives of the Foundation. Over the next two years, The Graph Foundation plans to onboard talented teams to address issues of centralization, security, and scalability in the web3 ecosystem. This initiative aims to support the adoption of web3 and strengthen decentralization efforts 3. Investor Support and Global Expansion: The Graph has received backing from several prominent ventures, including Coinbase Ventures, CoinFund, Framework Ventures, LedgerPrime, Lemniscap, and ParaFi Capital. The latest funding round in January 2022 was led by Tiger Global Management, with participation from Fenbushi Capital, Fintech Collective, Reciprocal Ventures, and Blockwall Digital Assets Fund. This funding is directed towards The Graph's expansion, particularly in Asia and Europe, leveraging the decentralized web and enhancing its global operations 4. 2018: Launch of The Graph by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann 5. 2019: Raised $2.5 million in a funding round led by Multicoin Capital 6. October 2020: Initial Coin Offering (ICO) of GRT token, raising $12 million 7. December 2020: Launch of The Graph's mainnet 8. 2021-2022: Continuous development, including expanding the support for over 27 new chains on the hosted service, and the introduction of Firehose for efficient data access 9. January 2022: Secured $50 million through a strategic GRT sale 10. 2023 Roadmap: Focus areas include Firehose, Sunset of the Hosted Service, Substreams, and moving the protocol to L2 with Arbitrum 6)What is the progress and future roadmap of it? ------------------------------------------------ 1. World of Data Services: Expansion beyond subgraphs to deliver a market of data services on the network 2. Developer Empowerment: Supporting developers through enhanced DevEx and tooling, including UX enhancements and streamlined billing 3. Optimized Indexer Performance: Boosting network performance with improved Indexer tooling and operational capabilities 4. Interconnected Graph of Data: Creating tools for composable data and an organized knowledge graph 5. Protocol Evolution & Resiliency: Improvements for a more resilient, flexible, and efficient protocol, including a new payments system and support for arbitration 6. Phasing out the Hosted Service: Transitioning dApps to the Decentralized Network, planned for Q1 2023 7. Firehose Integration: Critical for indexing chains like Arweave, Solana, and Near, enabling faster indexing and efficient processing of subgraphs 7)List all important links related to it. ----------------------------------------- The Graph Official Website: [https://thegraph.com/](https://thegraph.com/) The Graph Blog: [https://thegraph.com/blog/](https://thegraph.com/blog/) GitHub for The Graph Protocol: [https://github.com/graphprotocol](https://github.com/graphprotocol) The Graph Documentation: [https://thegraph.com/docs/](https://thegraph.com/docs/) The Graph Foundation: [https://thegraph.foundation/](https://thegraph.foundation/) The Graph Council: [https://thegraph.com/council/](https://thegraph.com/council/) The Graph Explorer (to interact with subgraphs): [https://thegraph.com/explorer/](https://thegraph.com/explorer/) 8)Bullishness index for this token from the perspective of token valuation and future potential from Chatgpt 4 -------------------------------------------------------------------------------------------------------------- 1. Increase Prediction: A forecast suggests an increase of 7.39% to $0.161237 by November 26, 2023 2. . Another prediction is more optimistic, estimating a possible high of $0.2989 by the end of 2023 and $1.286 by 2030 3. . Bitnation predicts GRT to be worth $0.2066 in 2023, with DigitalCoinPrice being more optimistic at $0.28 by December. [PricePrediction.net](http://PricePrediction.net) is more cautious, suggesting a trade at $0.13 by the end of this year 4. . TradingView's analysis suggests GRT might reach above $0.2, with a bearish market price prediction for 2023 at $0.055 5. Decrease Prediction: Contrasting views predict a -7.16% decrease to $0.124315 by November 20, 2023 6. --- *Originally published on [SoSo Value](https://paragraph.com/@soso-value-2/the-graph-in-depth-report-by-ai)*