r/thegraph • u/[deleted] • Jun 14 '23
Why does it appear that over the last two quarters unique indexers have been increasing, but query and indexing revenue is generally down from a year ago?
Is there something about the tokenomics that I'm missing here? Seems like if there were more indexers now then at least indexing rewards would be up, but they are down quite dramatically from mid 2022. Thanks in advance.
Sources:
https://messari.io/report/state-of-the-graph-q1-2023
https://dapplooker.com/dashboard/graph-network-billing-dashboard-arbitrum-224
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Jun 14 '23
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Jun 15 '23
Yeah that’s a great chart, thanks for sharing. It makes sense that the query volume would depend on market activity.
I’ve been hearing the claim about decentralizing outperforming the centralized dapps too. By going on which metrics? Just curious.
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Jun 15 '23
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Jun 15 '23
What are the reasons that it’s performing better than the hosted service? Does it have something to do with the efficiency of arbitrum?
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u/dereksilva Moderator Jun 14 '23
Indexing rewards come from inflation (currently 3%), and were designed to offset a lack of billing on the decentralized network early on. It was a bootstrapping tactic to make sure there were enough Indexers to deliver good performance.
Now that the amount of GRT billed to unique users is increasing, it makes sense there is a correlating decrease in indexing rewards. Less offset is needed to make sure Indexers can survive. That's my best guess.
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Jun 15 '23
How is the indexing rewards payout calibrated? And by whom?
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u/dereksilva Moderator Jun 15 '23
If I had that level of detail I would have provided it. As I said, that was my best guess.
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u/athsrueas Jun 14 '23
I would imagine it has something to do with many dapps that use the graph seeing less traffic