For those unfamiliar, The Graph (GRT) is an Ethereum currency that drives The Graph, a decentralized protocol for indexing and querying data from blockchains. The Graph indexes blockchain data from networks like Ethereum and Filecoin in the same way Google indexes the web. Data is organized into subgraphs, public APIs that anybody may use to inquire about specific subsets of the whole.
Whether it’s best to stake GET on a centralized exchange like Binance or on a decentralized platform comes only after the question of how to stake GRT. But even before you undertake familiarity with the process, you need to be familiar with The Graph as a network and GRT as its token. Why should you even support the project by staking?
Today’s The Graph price is $0.145940 USD with a 24-hour trading volume of $309,958,516. The Graph is up 6.24% in the last 24 hours. The current CoinMarketCap ranking is #54, with a live market cap of $1,006,985,093. It has a circulating supply of 6,900,000,000 GRT coins and a max. supply of 10,057,044,431 GRT coins.
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What is The Graph (GRT) token?
The goal of the Graph protocol is to organize decentralized blockchain data. Indexing will assist users in obtaining detailed information from various blockchain networks such as Ethereum and IPFS. The platform is designed to help developers create decentralized applications that run solely on public infrastructure. The network comprises four types of participants: indexers, curators, delegators, and consumers. The first three participants provide services and assist in network operations, while consumers utilize the dApp and inquire for information.
The Graph reached its highest price on Feb 12, 2021, when it was trading at its all-time high of $ 2.87. The lowest price since it’s ATH was $ 0.085670 (cycle low). The highest GRT price since the last cycle low was $ 0.157485 (cycle high). The Graph price prediction sentiment is currently neutral.
Additional market analysis gives the following risk concerns:
- Price dropped significantly over the past year, down -79%
- Outperformed by 96% of the top 100 crypto assets in 1 year
- Outperformed by Bitcoin and Ethereum
- Trading below the 200-day simple moving average
- Down -95% from all-time high
- The yearly inflation rate is 46.32%
The GRT Community
Yaniv Tal (Project Lead), Jannis Pohlman (Tech Lead), and Brandom Ramirez started it (Research Lead).
The Graph team completed a $5 million private token sale, backed by Coinbase Ventures, Framework Ventures, Digital Currency Group, and others, and a $2.5 million seed round led by Multicoin Capital. A $12 million public sale round was completed a few months before the mainnet’s debut.
How does The Graph Protocol Function?
Developers can establish a subgraph that describes how blockchain data is arranged so that app and dApp developers can consume it. App and dApp developers can query the network with GraphQL subgraph schemas, which are compensated in GRT tokens.
These data are supplied by indexers who operate as nodes and are compensated with GRT tokens to ensure that the API is always available in a decentralized manner and that data is accurately served.
Because there may be many subgraphs, curators are responsible for locating the most valuable subgraphs to developers. Curators are rewarded with GRT tokens for discovering the best subgraph that others may find beneficial.
The Tokenomics of GRT
The Graph has no maximum total token supply. Initially, 10 billion GRT was coined. The protocol defines both inflationary and deflationary techniques. Inflation may occur due to the yearly supply of new tokens, which is planned to be roughly 3% in year one. Technical governance assesses this figure regularly and can be as low as 0%. How to stake GRT seems to be a complex problem that needs a simple solution.
Deflation happens due to network members’ continuing protocol action, such as various deposit levies and prospective governance slash choices. The yearly burn rate is projected to be roughly 1% on average. While the net change in token supply is predicted to be +2% in year one, subsequent amounts of change may vary. They may even become somewhat deflationary if yearly issuance is set to zero over a defined time.
Ways of Earning GRT
GRT can be earned in different ways. You can earn GRT by staking, lending, or yield farming. Staking GRT will be discussed extensively, while lending and yield farming will be highlighted.
Lending your GRT
In Australia, the most straightforward way to generate income from your GRT is by using a marketplace like Gemini Cryptocurrency Exchange to buy and sell cryptocurrencies or borrow and lend digital assets.
Among the products we looked at, the Gemini Cryptocurrency Exchange offered the best return on GRT at 2.5%, but only for a limited period because of its predetermined deposit duration.
Staking your GRT tokens
GRT may be staked on the Graph, a proof-of-stake (PoS) blockchain to earn rewards. This approach’s complexity and sophisticated nature necessitate accessing The Graph blockchain via a wallet.
How to Choose a Delegator
- Are the validator, node operator, and service provider with secure physical infrastructure for the next-generation blockchain to function? In addition, are non-custodial staking services provided to prove of stake token holders?
- Is it a decentralized network of independent blockchain, which has been powered by a Proof of Stake-based BFT consensus algorithm?
- Does it have a multi-cloud staking infrastructure?
- What are the Staking Rewards vs Staking Fees?
Step-by-step guide on How to Stake GRT
There are primarily two stages that a user needs to stake Graph (GRT) tokens:
- Transfer GRT to MetaMask.
- In MetaMask, stake the token.
Use The Graph Staking UI to Stake the Token
When you have some GRT tokens in your exchange account, deposit them into your MetaMask wallet. But If users already have GRT tokens in their MetaMask wallet, they can skip this step.
- When you have some GRT tokens in your exchange account, you wish to move to your MetaMask wallet, as previously stated.
- To acquire the GRT token in your MetaMask wallet, you must obtain the public address.
- Log in to your exchange account and choose the GRT token to withdraw.
- Enter your receiving address in the Recipient address section and complete the transaction.
The GRT token will appear in your wallet when the transaction is complete.
Deposit GRT into MetaMask Wallet
If you are utilizing the token for the first time, you must add it by entering the token’s contract address in the Custom Token tab.
0xc944e90c64b2c07662a292be6244bdf05cda44a7 is the contract address.
Add the token address to the screenshot below. The GRT token is now visible in your wallet.
Using the Graph Staking UI to Stake GRT
Indexers manage the network’s functioning and security from the protocol node. If a GRT token holder wants to engage in network activity but does not want to host a node, they can delegate their token to indexers. In exchange, they earn a percentage of the award. To delegate their tokens, users can utilize The Graph staking UI (the Network Beta dApp).
- Go to the Network Beta dApp to stake. Users can connect to the dApp via MetaMask or WalletConnect.
- Connect with the wallet of your choice, i.e. MetaMask.
- The wallet is linked, as shown in the screenshot below. It displays the GRT tokens that are currently in the wallet.
Delegate GRT from the Graph explorer basically consists of the ff steps:
- Visit the Graph explorer section.
- In the pop-up menu, select “Connect wallet” and “Metamask.”
- Select the address you would like to choose from the Metamask notification window.
- Select the “Next” option and then click on “Connect.”
- Your account can now be seen in the upper right corner of Network Beta DApp.
- Choose an indexer to whom you would like to delegate and click on the delegation icon on the very right of that indexer.
You may also see a list of indexers that are currently active on the network. Before picking a network indexer, examine its various delegation settings.
The Query Fee Cut field represents the proportion of query fees retained by the indexer. In contrast, the Effective Reward Cut field reflects the percentage of incentives retained by the indexer for his services.
- If you’ve completed your validation, click the highlighted button below and pick Delegate.
You will be sent to a page where you can input the quantity of GRT tokens you want to delegate to this indexer. Tokens can be delegated to numerous indexers.
Also, the protocol automatically burns 0.5% of the token value as a delegating charge.
- Send the transaction. When the transaction is complete, you can view your delegation information by clicking on your address at the top of the page. Have it in mind that a whole lot of transactions come with gas fees. It is particular to most coins and not just GRT tokens.
How to Unstake GRT
Users have the option to unstake their tokens at any moment. The platform includes a 28-day bonding phase. Your unstaked tokens will be freed, and you can use them for transfer or other purposes. Please keep in mind that we will not be able to earn any awards during the cooling time.
- To delegate, go to the Undelegation tab by clicking on the indexer.
- Enter the number of tokens you want to delegate and then submit the transaction.
- When the transaction is completed, you will notice that a reverse timer has begun. However, we discovered that the timer has a higher value (28 days 22hr 59m) than the project stated for their bonding period.
How to Stake GRT on Binance
With a centralized crypto exchange such as Binance, you can start earning GRT staking rewards instantly. Furthermore, since Binance is the largest exchange, it provides a simple user interface and a decent return on your staked graph tokens while also being able to withdraw your staked GRT at any time. The steps are very simple.
- Sign in to your Binance account using your phone number or email.
- Now, select the “Finance” option and the “Binance Earn” option.
- Come down to the “Locked Staking” option and click on the “View more” button.
- Select GRT from the list of assets you can stake, fix the duration and then click on “Stake Now.”
- Confirm the details of GRT, such as Duration and Available amount.
- Enter the amount you want to stake and click on ” Confirm purchase.”
- To view past locked staking activities, select “Wallet,” then click on “Earn” and select “Locked Staking.”
How to Compute GRT Staking Rewards
Because you will be staking GRT through an indexer, the indexer’s settings will be the first-factor influencing returns. Take note of the “query fee cut” and the “effective reward cut.” The query fee cut is the percentage of query charge refunds retained by an indexer. Similarly, the effective reward cut is the portion of the incentives retained by the indexer.
If you’re staking GRT on Binance, you will be given options that are suitable for your purpose.
Benefits of Staking GRT
- GRT has a positive performance compared to the token sale price.
- GRT has high liquidity based on its market cap.
- Staking on Binance is relatively safe and simple.
- Staking on Metamask is transparent and clear for everyone.
Risks of Staking GRT
- If you choose the Metamask staking method, you lose time processing payments and transactions due to the slow network.
- In Binance, you have limited opportunities in staking assets because they are mostly sold out.
- Once locked in, you lose opportunities for trade during the locked-in period.
- Fees incurred might not be worth all the trouble.
Should you stake GRT
To fortify the PoS network, staking is an innovative method. The delegator and the node operator benefit from this arrangement (indexers in this case). Indexers will receive extra prizes to provide to their delegator based on how well they do their job. This tactic strengthens the network’s defenses and stability and promotes the project’s expansion.
Finally, the price of GRT will determine the rewards on GRT staking. If the price of GRT declines while you are staking, your overall worth may be lower than when you began. However, if the price rises again in the future, you will have more GRT tokens.
As always, always do your own diligent research and invest only the amount of money not apportioned to basic needs.