GIP 0084: Chain Deprecation Process (#76)

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* GIP 0084

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Author: katembfoust

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+---
+GIP: "0084"
+Title: Chain Deprecation
+Authors: Ørjan Austead, Andrew Clews, Kate Foust-Pakalniskis
+Created: May 9, 2025
+Updated: June 16, 2024
+Stage: Draft
+---
+
+# Abstract
+
+This Graph Improvement Proposal (GIP) outlines a governance-driven framework for deprecating indexing rewards on The Graph Network. Rewards issuance will be discontinued for blockchain networks that no longer demonstrate sustained utility, as evidenced by consistent query volume and ongoing developer activity. This proposal defines objective criteria and procedural steps for evaluating and deprecating underutilized chains.
+
+---
+
+# Motivation
+
+As The Graph Network now facilitates billions of queries monthly and increasingly underpins critical web3 infrastructure, its reward mechanisms must evolve to reflect this operational maturity.
+
+Indexing rewards should be allocated exclusively to chains with demonstrable and sustained adoption. Prioritizing highly active chains ensures that indexer resources are directed toward data of greatest utility and that the protocol efficiently incentivizes impactful participation.
+
+This GIP introduces a systematic approach for monitoring chain adoption post-integration and defines conditions under which rewards may be removed from chains failing to meet minimum adoption thresholds.
+
+---
+
+# High-Level Description
+
+Chain deprecation will follow a structured three-stage process:
+
+1. **Initial Period**: Following integration via [GIP-0057](https://forum.thegraph.com/t/gip-0057-chain-integration-process/4468) and activation of indexing rewards, each chain enters an initial monitoring phase lasting several months.
+2. **Quarterly Assessment**: Post-initial period, chains undergo quarterly evaluations based on metrics such as query volume and developer activity to assess continued eligibility for rewards.
+3. **Governance Review and Action**: Chains failing to meet established benchmarks will be reviewed and a governance vote by the Council to determine reward deprecation.
+
+![Deprecation GIP](/assets/deprecation_gip.png)
+
+## **Stage 1: Initial Period**
+
+- **Trigger:** Completion of the Chain Integration Process (CIP) as defined in [GIP-0057](https://forum.thegraph.com/t/gip-0057-chain-integration-process/4468), followed by activation of indexing rewards.
+- **Duration:** Minimum of 3 months (configurable based on Council discretion).
+- **Purpose:** Provides a grace period for chains to gain adoption and demonstrate early indicators of network demand before formal evaluation begins.
+- **No Evaluation Conducted:** Chains in this stage are excluded from deprecation assessments.
+
+## **Stage 2: Quarterly Evaluation Phase**
+
+- **Trigger:** Conclusion of the initial period.
+- **Frequency:** Evaluations occur on a fixed quarterly cadence.
+- **Evaluation Criteria:**
+    - **Query Volume:** Sustained query volume
+    - **Developer Engagement:** Metrics from ecosystem tooling (e.g., GitHub activity, forum engagement, subgraph upgrades).
+    - **Economic Signals:** Signal, allocations, and query fees
+- **Data Collection:** Metrics are sourced from the Graph Network telemetry, Subgraph Studio, Graph Explorer, and community tools.
+
+Chains meeting or exceeding the established thresholds retain eligibility for rewards. Chains falling below thresholds proceed to Stage 3.
+
+## **Stage 3: Eligibility Review & Governance Process**
+
+- **Preparation of CDP (Chain Deprecation Process) Report:** A formal report listing underperforming chains is prepared:
+    - Raw and aggregated data for each evaluation criterion
+    - Historical performance trends
+    - Contextual analysis (e.g., recent migrations, known outages)
+- **Stakeholder Review:** The chains included in the report will be shared with all integration stakeholders to ensure alignment and address potential outstanding considerations.
+- **Council Review:** The report is submitted to the Graph Council for deliberation and vote under the standard GGP.
+- **Vote Outcome:**
+    - **Approved:** Indexing rewards for listed chains are set to be deprecated within 30 days of the vote
+    - **Rejected or Deferred:** Chains retain rewards until the next evaluation cycle.
+- **Chain & Community Review:** Once the council has voted to approve rewards deprecation, the chain’s team, indexers, and subgraph developers will be given a 30-day notice of the change in status
+
+### **Deprecation Implementation**
+
+- **Post-Approval & 30-Day Notice Actions:**
+    - Feature matrix is updated to reflect the removal of rewards issuance.
+    - UI and documentation updates reflect deprecation status.
+
+---
+
+## Requirements and Exit Criteria
+
+| **Stage** | **Requirements for Entry** | **Exit Criteria** |
+| --- | --- | --- |
+| **Stage 1: Initial Period** | Chain integrated via GIP-0057, Indexing rewards activated |  Minimum of 3 months elapsed since activation, Automatically transitions to Stage 2 |
+| **Stage 2: Quarterly Evaluation Phase** | Completion of initial period, Inclusion in quarterly evaluation cycle | Meets or exceeds evaluation thresholds → **remain eligible**, Falls below thresholds → **Stage 3** |
+| **Stage 3: Eligibility Review & Governance Process** | Chain flagged for underperformance in Stage 2, Report prepared | Council vote: **Approve** → Rewards deprecated after 30-day grace period, **Reject/Defer** → Remains in evaluation |
+
+## **Key Evaluation Metrics (Used in Stage 2)**
+
+| **Metric**  | **Description** |
+| --- | --- |
+| **Query Volume** | Average number of queries served per month |
+| **Economic Activity** | Signal, allocations, and query fees |
+| **Developer Engagement** | On-chain or community activity from developers, dapp usage |
+
+## **Deprecation Triggers (Used in Stage 3)**
+
+- One or more metrics consistently fall below thresholds for one or more consecutive evaluation periods
+- No mitigating context (e.g., effects on other key data sources, major objection from chain stakeholders, etc.)
+- Council votes to approve deprecation based on report findings