Author: Sean Created: 2025-03-14 Status: Voting

Motivation/Purpose

The motivation of increasing the SQT block reward to 6.3 is to provide more flexibility when adjusting the project type based rewards pool within this limit.

The idea is to modify the reward for each project type in a flexible and dynamic manner to incentivize the desired actions within the network. For example, we propose to slightly increase the reward for RPC to help further support node operators and anticipate increasing the rewards for SubGraph Projects in the near future to encourage more SubGraph projects to the SubQuery Network.

Whilst there may be some concerns about increasing the rewards, this is inline with our 1% planned inflation and well below the 3% inflation of The Graph for instance.

In conjunction with this, longer term strategies to grow our customer base have been planned and these strategies will be shared with the community in the coming weeks and months to encourage further community feedback and engagement.

Description

Following on from SPP-1 where rewards were separated based on project types, the current SQT/block reward stands at 4.2.

This can be broken down as follows: 2.5 for SubQuery Project 1.5 for RPC Projects 0.2 for SubGraph Projects

We propose to increase the overall block reward from 4.2 to 6.3 SQT/block which will equate to a 1% inflation reward rate inline with our specified network parameters.

This provides a buffer of 2.1 SQT/block to increase the rewards for various project types with the first being for RPC projects from 1.5 to 2.5 SQT/block.

We also plan to increase the rewards for SubGraphs in due course to incentivise more of these types of projects.#