The Graph Raises $5 million with SAFT for 2020 network launch

The Graph closed a $5 million SAFT (Simple Agreement for Future Tokens) fundraise from multiple crypto funds including Framework, ParaFi Capital, Multicoin Capital, Coinbase Ventures, Digital Currency Group, and more.

The Graph is an indexing protocol that enables developers to access data from Ethereum and decentralized applications. Currently, the Graph’s blockchain indexer is open-source but utilizes a hosted service that is accessible through the GraphQL API. This year, The Graph is planning on launching its own network that will operate by incentivizing individuals to run nodes and process queries in an open marketplace. It appears that The Graph intends for its token to enable governance features and ensure that network fees are earned by members of the community.

Why it matters:

• The Graph reports 50 million queries per day with over 750M queries in May 2020, up 45% from April 2020. These numbers show a thriving use case for querying blockchain data.
• The funding raise and future token launch is taking a similar approach to Compound – build a platform with a central team of developers and gradually decentralize. The success or failure of the Graph’s token will be another data point in the case for or against progressive decentralization.