1/24 I’m excited to announce Reciprocal’s participation in The Graph’s $50m treasury sale led by Tiger Global! We initially supported @graphprotocol in ‘18 and believe now more than ever that it's mission-critical #web3 infrastructure. Here’s why we’re so bullish on $GRT 🧵⏳

2/24 @graphprotocol improves the UX of web3. The Graph solves what’s commonly referred to as the blockchain “read” problem, where the block-based data structure makes it difficult for dapps to query on-chain data in a fast and cost-effective manner…

3/24 the data from each block needs to be parsed and structured into a format that’s easy for dapps to query. Back in ‘17/’18, dapps were all running their own ETH archival nodes and dedicating half their dev resources to DevOps…inefficient!

4/24 The obvious alternative was to build a SaaS company to run a bunch of archival nodes and serve up this data. But doesn’t it seem silly to write data to a decentralized database, only to have it pulled, parsed, structured, and served by a co running a centralized database?

5/24 @graphprotocol keeps our on-chain data decentralized. Queries are served by a decentralized network of nodes called Indexers, that are compensated for delivering this data when requested. The Indexers compete against each other for this work in an open marketplace…

6/24 …dapps build data schemas into Subgraphs (open APIs), which Indexers can choose to store/serve based on the fee revenue from each. So dapps only need to pay to index and serve the data that’s required for their own UI, as opposed to the entire chain in an archival node.

7/24 @graphprotocol enables “data composability”. Over time, The Graph becomes an open data layer for Web3, where indexers ensure data is updated/live, and subgraphs are “data legos”, like the $ legos of #DeFi , that any developer can access and combine to feed their dapp.

8/24 Composability drives developer and data network effects, which drives exponential growth Since launching in 2020, @graphprotocol has been used by 27k developers, who have created 35k subgraphs, which have been queried over 430B times!

9/24 Despite being one of the most used protocols in #web3 , @graphprotocol has maintained solid growth numbers. -Query vlm hit 60B/month in December (+14% MoM) -Subgraphs are +46% QoQ, +765% YoY -Devs are +14% QoQ, +250% YoY

11/24 All value accrues to @graphprotocol 's $GRT token. GRT is a utility “work token”. One must own/stake the token into the network in order to perform and be compensated for work. In this case, the primary work is indexing subgraphs and serving queries to earn query fees.

12/24 But there’s more to $GRT! @graphprotocol team realized having an open and permissionless marketplace of subgraphs would be incredibly powerful for driving that data composability, but decentralized marketplaces introduce unique problems. Key among them is curation…

13/24 ...the largest marketplaces in the world have armies of employees constantly ranking, filtering, and assuring the quality of the goods and services being offered. But how do you do this in a decentralized way…?

14/24 To solve this, The Graph created a “curator” role that's incentivized to vet & bond $GRT to only high-quality subgraphs in order to earn a % of query fees. The economic incentive enables the open marketplace of subgraphs while ensuring a quality experience for devs.

15/24 Quick recap → value accrues to $GRT holders via query fees (network rev), and you earn a share of those fees by buying GRT & staking it as an: -Indexer -Curator -Delegator (passively stake to an indexer and earn GRT) But how much revenue could @graphprotocol generate?

16/24 The Graph has a path to being a top #web3 revenue generatoooor The Graph’s hosted service is now being queried >60b times/month, and in '22, the dapps driving these queries will be migrated to the decentralized network at an increasing rate. This is just the beginning!

17/24 Majority of The Graph’s queries currently come from the ETH ecosystem, but it supports 26 networks on the hosted service. This chain agnostic feature positions it to be a universal open data layer for all of web3, regardless of the layer 1 or 2 devs decide to build on.

18/24 We believe this will allow @graphprotocol to grow its usage to hundreds of billions of queries per month. But how does that translate into revenue? Well, it’s difficult to forecast query prices with precision bc the rate will be subject to open market forces,

19/24 but if we use conservative floor pricing (0.00025 $GRT/query) and assume @graphprotocol doesn’t grow beyond 60 billion monthly queries, the network would still generate ~$95 million in annual revenue with GRT at $0.53. The key here is the migration…

20/24 A metric we call “query uptake”, or the percentage of total @graphprotocol queries happening on the decentralized network, will be the number one driver for $GRT in 2022. Uptake will come from migrating dapps, which we’re confident The Graph’s core teams can execute on,

21/24 especially given that many top projects in web3, like @coinbase , @CoinMarketCap , @Uniswap , @coingecko , @juiceboxETH , @synthetix_io , & @artblocks_io , just to name a few, are already using it. Last but not least, this financing serves an important capital markets purpose.

22/24 Investors in this financing represent a long-term commitment to the vision and growth potential of the network as early-stage investors’ tokens are unlocking. We believe @graphprotocol is a generational innovation and is still in the early days of its growth potential.

23/24 We’re committed to supporting the network long-term and encourage GRT holders to delegate to our indexer to earn ~5-15% APY in $GRT:

24/24 And most importantly, @graphprotocol is hiring for 17 roles right now! If you’re interested in a role don’t hesitate to reach out! *Not Financial Advice*