To understand how the rewards distribution frequency works, it's important to have some understanding of The Graph staking mechanics.
Indexers, like P2P Validator, "allocate" stake to certain subgraphs to create them and receive staking rewards. Each subgraph has a different profitability. The more profitable a subgraph is, the more attractive it is for indexers to allocate their stake to it. However, if others have already allocated a lot of stake to this subgraph, the profitability decreases. Therefore, to maximize staking rewards, indexers must carefully select which subgraph to allocate their stake to.
Staking rewards will be distributed to delegators only when an indexer closes the allocation of their stake to a subgraph.
Warm up
You will start earning rewards as soon as you delegate. When your rewards are distributed, they automatically compound into your delegation. Please note that there is a 0.5% delegation tax which is burned whenever a Delegator delegates GRT on the network.
Rewards Distribution Frequency
Rewards will be distributed to delegators only when the indexer closes an allocation. Otherwise, if you choose to withdraw your delegated GRT, rewards become available after the unbounding period, which is every 28 epochs and approximately 26 days.
Rewards used to be paid more consistently, but there have been many changes to The Graph recently. The network has grown from having only 1 subgraph to over 7000 subgraphs, and we expect more than 10,000 by the end of the year. The rewards were enabled only in the Arbitrum network. Many factors made it more complicated to manage the allocations of our stake to different subgraphs.
To address this, we created an algorithm and software associated with DecisionMakingTool (DMT), which helps us make better decisions from the Indexer (P2P Validator) side and enables auto-reallocation.
As a result, some days we may close only a few of our 20+ open allocations, on other days we might close and open everything, and on some days, we might not make any changes. We do this to maximize delegators' rewards and increase the security of our stake. So, you ensure that you’re receiving the best rewards more frequently.
We understand that this process is complex. Please do not hesitate to reach out to us if you have any questions.
For more information on staking TheGraph (GRT) with P2P.org and our special offer for large GRT delegations, visit https://p2p.org/thegraph.
For additional staking support, visit the P2P TheGraph staking Help Centre
You can also get in contact with a live agent by selecting the speech bubble at the bottom right of this page, sending a message to the Telegram bot, or emailing [email protected].