GGP-0029: Increase L2 Rewards to 25%

GIP: 0052 Title: Timeline and requirements to increase rewards in L2 Authors: Pablo Carranza Vélez, Ariel Barmat, Tomás Migone

Since GIP-0031 and GIP-0040 have been deployed, The Graph now runs the protocol on both Ethereum Mainnet (L1) and Arbitrum One (L2). Participants are free to perform actions on either chain, and as GIP-0037 and GIP-0043 have been rolled out, indexing rewards in L2 are enabled and set at 5% of total issuance.

Transfer tools have also been deployed as per GIP-0046 to allow participants to transfer their stake, delegation, subgraphs and curation to L2.

GIP-0052 depends on GIP-0046 and proposes increasing the indexing rewards in L2, in several steps until fully transitioning protocol issuance to Arbitrum One. This GGP proposes approving, for now, only the first of such steps, increasing issuance in Arbitrum One to 25% of total issuance (and reducing it in L1 accordingly), on September 10th, 2023, if no blocking issues are reported before then.

Following a successful a successful vote of this proposal, the following transactions will be executed:

• The initial increase of L2 rewards to 25% of total issuance (30.1825 GRT per block) will be on Arbitrum One on September 10th.
• Reducing L1 issuance to 75% (i.e. 90.5475 GRT per block) will be executed at the same time.
• A third transaction to adjust the L1 bridge mint limit accordingly will be executed in the following days after that.

For practical reasons, the Council transactions may be batched with the deployment of Exponential Rebates as per GGP-0027.