The Graph Ties Indexer Rewards to Service Quality with REO Launch

The Graph (GRT) has introduced its Rewards Eligibility Oracle (REO), which ties Indexer rewards to their service quality.

Previously, The Graph allocated rewards based on curation signal and staked GRT, regardless of whether Indexers served queries or provided useful data. This led to 15.2% of indexing rewards in 2025 going to inactive Indexers who failed to deliver value.

The activation of REO changes the system to 'proof of work' by ensuring only active and responsive Indexers earn rewards.

REO sets a minimum standard for Indexer eligibility: serving at least one valid query on five separate days within a rolling 28-day window. To qualify, queries must meet specific criteria such as returning an HTTP 200 status, responding within 5,000 milliseconds, and being within 50,000 blocks of the chainhead.

Currently, 49 out of 97 Indexers on the network meet the criteria, while those who fail to qualify lose access to indexing rewards but can regain eligibility by improving their service. Rewards for ineligible Indexers are withheld rather than confiscated, and can still be claimed if eligibility is restored within the allocation period.

The Graph Foundation is also introducing a Liquid Staking Initiative, which allows staked GRT to be converted into stGRT, a liquid token that represents staked positions and accrued rewards. This program aims to address the need for Delegators to actively monitor their Indexer's status via the REO dashboard.