The Graph: An Overview

The Graph functions as a decentralized indexing and query protocol designed to organize and make accessible data from blockchains and distributed storage networks. Through its infrastructure, the protocol supports Web3 and DeFi applications deployed across various multi-chain networks such as Ethereum, IPFS, POA, Celo, Polygon, Polkadot, and additional blockchain ecosystems.

The Graph Foundation was established in October 2020 as an independent entity to foster the growth and diversity of The Graph ecosystem before the protocol's mainnet activation. Eva Beylin was appointed to lead The Graph Foundation as its director.

The Graph's mainnet went live on December 17, 2020, marking a significant milestone for the protocol. Following this launch, the GRT token experienced substantial appreciation, gaining approximately 425% in value on Coinbase Pro within three days. Trading activity intensified dramatically, escalating from $880 million to $2.8 billion in volume during this period. The token's market capitalization surpassed $929 million in just four days post-launch. The mainnet activation involved deploying The Graph Network contracts to Ethereum's main network, releasing GRT tokens, initiating distributions to stakeholders, and establishing The Bug Bounty Program.

On February 18, 2021, The Graph announced its extension to include Polkadot, NEAR, Solana, and Celo Layer 1 blockchains, thereby broadening opportunities for developers and applications across a more extensive Web3 ecosystem.

History

The Graph's concept emerged in late 2017 and was formally presented during summer 2018 by co-founders Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez. These three individuals had worked together on various startup ventures centered on software development tools and platforms. Following their introduction to Ethereum in 2017, they became motivated to develop decentralized applications on blockchain networks.

Since its inception in January 2019, The Graph has operated a hosted service supporting over 2,900 subgraphs for Web3 and DeFi platforms. Graph Protocol Incorporation, later rebranded as Edge & Node, conceived and developed the foundational Graph ecosystem architecture. The Graph Foundation was subsequently established in 2020 to nurture the broader network and support its diverse participants.

Co-founder and Project Lead Yaniv Tal commented on the mainnet launch: "After years of dedicated effort, our vision for a decentralized indexing and API infrastructure layer serving Web3 has materialized. We are committed to decentralization principles, and The Graph Network's launch represents a pivotal moment in enabling decentralized human coordination and cooperation. The Graph is already serving numerous significant DeFi and Web3 projects, and this network empowers the crypto community to collaborate with strong economic incentives to challenge traditional technology and financial institutions, fostering more efficient systems for resource distribution and economic advancement."

Overview

The initial version of The Graph was developed by its founders in late 2017. Following this, the team deployed its Hosted Service and Graph Explorer in January 2019. The launch incorporated seven initial partners: Dharma, Compound, Uniswap, Ethereum Name Service, Origin Protocol, Decentraland, and Livepeer. These protocols became accessible through The Graph for use by external developers.

The Graph expanded from its initial seven partner protocols to hundreds of supported applications, including Synthetix, Uniswap, Gnosis, Aragon, Livepeer, Melonport AG, Decentraland, and numerous others. Applications access structured data through subgraphs—open APIs built on The Graph—which specify indexing approaches for information such as transaction records, DEX liquidity pools, and account balances. By May 2020, The Graph's hosted service was processing 50 million queries daily and had accumulated over 750 million queries overall, representing a 45% increase from April 2020 activity.

The Graph introduced Mission Control on July 27, 2020, serving as an incentivized testnet environment. This competition allowed Indexer operators to execute nodes, fulfill assigned objectives, and contribute to refining The Graph Network infrastructure ahead of mainnet deployment. Over 15 node operation firms, among them Figment Networks, Staking Facilities, Certus One, Staked, Chorus One, and Bloq, registered to participate in the Mission Control testnet.

• Phase 1 activates Arbitrum One on the mainnet.
• Phase 2 establishes indexing reward systems on Arbitrum One.
• Phase 3 facilitates streamlined transition to Arbitrum One.

Products

Graph Explorer was introduced in January 2019 as a platform enabling developers to identify all indexed data available on The Graph and integrate it into their decentralized applications. The initial Graph Explorer included the following capabilities:

Subgraph Studio functions as a development environment where users construct and configure subgraphs, incorporate descriptive information, and distribute them via the decentralized Explorer. Users can verify their subgraph functionality before publishing and regulate API access keys to particular web domains, controlling which indexers may query their endpoints. This studio incorporates:

The Hosted Service provides comprehensive infrastructure for Graph applications and services.

• query interface for discovering available datasets using introspection capabilities and executing queries
• event monitoring system for tracking processed information and system errors
• zero-downtime deployment mechanism supporting instantaneous updates
• management interface for monitoring subgraph operations and controlling access credentials
• version management tool for switching between pending and active subgraph versions during synchronization
• authentication via GitHub supporting individual and organizational profiles
• subgraph development via the Studio interface
• deployment functionality using command-line tools
• subgraph distribution through the Studio interface
• testing capabilities via the query playground

Graph Token (GRT)

GRT is an ERC-20 token operating on the Ethereum network and facilitating resource allocation within the protocol. Participants including Indexers, Curators, and Delegators generate income from network activities corresponding to their contribution level and GRT holdings. At mainnet deployment, total GRT supply was established at 10 billion tokens, with new token issuance beginning at 3% annually through indexing rewards, subject to community governance decisions.

The GRT token was rapidly listed on major cryptocurrency trading platforms following the successful mainnet launch on December 17, 2020. This quick exchange availability caused The Graph's total valuation to exceed $1 billion within three days, with listings on prominent platforms including Coinbase Pro, Binance, KuCoin, and OKEx, along with many others. According to Santiment analytics, the GRT launch generated substantial social media engagement, with "GRT" discussions surpassing even those of Elon Musk.

The GRT token serves to facilitate the query market's operation. The protocol incorporates GRT into two principal mechanisms:

• Indexer Participation. Indexers pledge Graph Tokens to become discoverable within the query marketplace and establish economic assurance for their services.
• Curator Market Activity. Curators stake Graph Tokens in a curation marketplace, earning incentives for accurately forecasting which subgraphs will prove valuable to the broader network.

GRT Public Sale

The Graph Foundation completed a public token distribution on October 28, 2020, raising $12 million in GRT tokens from community participants. The sale allocated 4% of total token supply (400 million tokens) to approximately 4,500 qualifying individuals across more than 90 countries outside the United States who completed required identity verification procedures. These initial community members, termed Original Graphers, formed The Graph's foundational participant base at mainnet activation. Participants hailed from Vietnam, China, India, Great Britain, and numerous additional nations. GRT holders could subsequently engage with The Graph Network by assuming roles as Indexers, Curators, or Delegators, offering their capabilities to decentralized applications.

The token distribution employed a three-phase structure to optimize community access and limit risks associated with network congestion and bot interference. To broaden participation and prevent concentrated purchases, each participant received personalized spending limits. Sale participants completed identity verification and questionnaires addressing their Graph familiarity, DeFi interest, Web3 understanding, and preparedness to contribute meaningfully to the network. The three phases allocated individual purchasing limits ranging from $1,000 to $5,000 USD equivalent according to questionnaire responses and prior network contributions.

The sale attracted 14,000 successful registrations. Phase 1 released 300 million GRT tokens, allowing registrants 24 hours to acquire their maximum allocation. Upon Phase 1's conclusion, additional registrants became eligible for Phase 2, which reserved 100 million GRT tokens. Phase 3 tokens were exhausted immediately due to substantial demand, selling out within approximately 11 minutes, resulting in the sale's early completion.

The Graph conducted an unprecedented token sale executed entirely on the Ethereum blockchain. The Graph Foundation constructed the GRT Sale application using a subgraph and integrated it with MetaMask and WalletConnect infrastructure.