On June 30, defi startup The Graph announced that it had completed a $5 Million token sale that involved Coinbase Ventures, the Digital Currency Group, Framework Ventures, Multicoin Capital, DTC Capital and others. The Graph had also raised $2.5 million in 2019.
Funds raised from the token sale, involving “simple agreement for future tokens” (SAFT) tokens, will be used to build and launch The Graph’s decentralized network. It currently operates on a hosted service but plans to transition to a fully decentralized network by the end of the year, which will allows dapps to run from their own nodes on the network.
The Graph, under development for 2 years, is an indexing protocol for querying Ethereum and the Interplanetary File System (IPFS). As a part of the development infrastructure going into Web 3.0, The Graph allows anyone to build and publish open APIs and access data from subgraphs. Projects that are already using The Graph include Aragon, Decentraland, Uniswap and Synthetix.
CEO Yaniv Tal has said that thousands of developers are already making use of the platform’s features and that the dapp development process would be made much easier for those looking to build robust applications. Tal said following the completion of the funding round,
Teams used to spend months building proprietary indexing servers and operating the servers themselves. The Graph built an indexing protocol that allows developers to build beautiful consumer-grade applications without running servers. It’s designed to link fragmented data and make it all accessible via a convenient GraphQL API.
Token distributions details are yet to be announced, but Tal has said that The Graph will be “taking a similar path as Compound” which he described as “a really good route, in general.”