Draft Proposal: XIP#12: Acquire & Stake GRT to provide indexing & query services for NFTX

Authors

ChopChop, Javery

Glossary

DAO

Indexing

Node

Query

Summary

This proposal is intended to acquire a total of 100K GRT (Graph Tokens) to stake them, allowing us to operate our own Graph Network node. Running our own node makes us less dependent on third-party nodes, improving the stability and performance of our nftx.io front-end.

Secondary effects of staking GRT are potential yields generated by others using our indexing & query processing services. The acquired GRT tokens will be part of the NFTX DAO Balance sheet.

Funds used to acquire GRT will be raised from the partial sale of our existing xSUSHI balance.

Rationale

The NFTX marketplace uses the Graph to query data that powers the front end including the vaults, holdings, and prices. The site currently uses a shared hosting solution for these requests which is being phased out by The Graph in favor of decentralized solutions. Whenever these endpoints become unavailable, the data required to display the vaults, NFTs, staked positions, and coins are unavailable. While we have a caching layer to help, the cached version is stale and won’t necessarily reflect the current status of the blockchain.

By creating a Graph Indexer and being part of the decentralized infrastructure we can ensure that we always have an endpoint available for our front-end product requirements and avoid any potential downtime for the users of our app. We will also be providing a query endpoint for anyone who wants to build other products upon the NFTX protocol making this easier to set up. Finally, we will be contributing to the wider community because along with the NFTX subgraph we will be indexing Sushi Exchange, EIP721, and EIP1155 subgraphs which other non-related projects can use to support their products.

While this could be considered philanthropic, staking the GRT against these subgraphs and contributing to the decentralized nodes will be earning GRT from other Graph users and provide an additional revenue stream for the DAO. Initially, the pricing for use will be targeted towards covering the infrastructure costs of the nodes and reviewed in the future if additional revenue should be incorporated into the cost of queries.

Effect

Opportunity

  • Operating our own node as NFTX makes us less dependent on third parties, further decentralizing the products we’re offering.
  • Our node may be used by any other third party, generating yield from query fees, indexing rewards, and rebates.
  • GRT may go up in price over time

Risk

  • GRT may go down in price over time

Specifications

Acquiring GRT will be done from open markets. The specific way this is done is not shared in advance to prevent frontrunning.

Funding request - Yes - Implementation Requires Funding

In order to acquire 100K GRT, we will require funds from the DAO treasury based on the market value of GRT during the acquisition phase.

We estimate the total cost to lay between 100K & 200K USD, based on the time this proposal takes to pass. If this proposal is to pass, this is funded by using part of our xSushi holdings.

Communication

Proposed points of discussion.

  • Any questions/concerns regarding acquiring tokens

Quorum (For forum)

  • Minimum Quorum: At least 5 votes
  • Passing Threshold: More than 50% must vote in agreement for the XIP to Pass. For changes to the NFTX contract, more than 70% must vote in agreement for the XIP to pass.
  • Yes
  • Not in current form, see comments

0 voters

3 Likes

Yes. The subgraphs are a core part of our infrastructure and should be treated as such. Makes sense to sell off the xSUSHI for it.

1 Like

As a co-author, I’m 100% behind this.

1 Like

As this proposal was cast to Snapshot and did not reach quorum in terms of the minimum amount voted, I’m bumping the thread to cast a quick additional vote on whether to rebroadcast it to Snapshot or not.

When this consensus check passes a minimum of 5 votes, I will rebroadcast the vote to Snapshot for an additional 48 hours (and rally larger NFTX holders to cast their votes).

Should we rebroadcast XIP#12 on Snapshot after lack of interest?

  • Yes, Rebroadcast
  • No, cancel proposal

0 voters