Understanding CoinList's New Project Subsquid: Focused on Cross-Chain Indexing and Fast Queries

Author: Nan Zhi, Odaily Planet Daily

According to official news, CoinList announced that the community sale of Subsquid (SQD) will start at 2:00 AM on January 19, and registration is now open.

It is understood that Subsquid Network is a decentralized data lake and query engine focused on cross-chain indexing and fast querying, ensuring security through zero-knowledge proofs. Subsquid launched their reward test network on CoinList in September 2023, attracting nearly 20,000 developers to participate in network testing.

Odaily Planet Daily has compiled information from multiple sources to help readers gain a deeper understanding of the advantages of the Subsquid Network project and its tokenomics.

Project Introduction

Subsquid Network is a decentralized query engine optimized for batch extraction of large amounts of data. Currently, it provides on-chain data from over 100 EVM and Substrate networks, including event logs, transaction receipts, tracking, and status differences for each transaction. According to Subsquid, it will also support general SQL queries and an ever-growing set of structured datasets derived from on-chain and off-chain data in the future.

The vision and development path of Subsquid Network include:

• Permissionless data channels: Web3 DApps have become overly reliant on centralized RPC and API providers. Subsquid aims to provide unlimited scalability and a long-term solution for Web3 developers focused on consumer and real-world use case DApps.

• A unified data center for Web3: Subsquid plans to build and prepare all data from all chains, with plans to support scaling to large data chains like Solana, as well as large ecosystems like ETH and its L2s.

• An innovative growth-oriented economic model: As innovations like L1, L2, and danksharding lead to an explosion of blockchain data, the demand for network participants to store this data will increase. With the growth of data storage and network participation, the value of entering subnets will rise. The token design of Subsquid aims to capture this value and provide a mechanism to reduce data costs for developers and analysts to zero.

Main Products of Subsquid Network

Squid is an indexing product developed using the Squid SDK, with features including:

• An advanced codebase for extracting and filtering Subsquid Network data in the extract-transform-load (ETL) process;

• User-friendly tools for decoding and normalizing raw data, and effectively accessing network status;

• A pluggable data receiver that can save data to Postgres, local files, or BigQuery;

• A GraphQL server that allows developers to flexibly query and retrieve data;

• Seamless handling of unfinalized blocks for real-time data retrieval;

• Fast data extraction and decoding for local analysis.

In short, Squid enables developers to access on-chain data at low cost, personalized, and in real-time for analysis or coupling with other protocols.

Advantages of Subsquid Network

Indexing on-chain data is crucial for building Web3 DApps and analytical dashboards. The advantages of Subsquid Network include:

• Comprehensiveness: Subsquid Network and its sub-products provide a fast and cost-effective way to extract and index historical data, even from lesser-known chains.

• Low Cost: Subsquid Network states that it can reduce data extraction and indexing costs by up to 90% compared to directly indexing through RPC providers like Alchemy or Infura. Ultimately, by using Subsquid Cloud, developers no longer need to worry about the costs and hassles of maintaining indexing infrastructure.

• High Performance: Subsquid is modular—on-chain data is extracted from a decentralized data layer (Subsquid Network) rather than directly from blockchain nodes. This increases indexing speed by 100 times, ensuring data consistency and reliable indexing even for small networks.

• Developer-Friendly: It can be accessed using multiple programming languages, and the stack has already been integrated with a comprehensive set of popular Web2 and Web3 development tools.

Usage Fees of Subsquid Network

Before the mainnet launch, accessing data from the Subsquid Network is free. After that, the cost for extracting 1 TB of data is expected to be between $1 and $5. Subsquid Cloud provides free space for developing indexers and offers hosting services for configured indexing channels.

Project Financing Situation

In November 2021, the Substrate-based blockchain query node framework Subsquid announced the completion of a $3.8 million seed round of financing, led by Hypersphere Ventures, with participation from Zeeprime Capital, LatticeCapital, Illusionist Group, Digital Finance Group (DFG), Jsquare, SMAPE Capital, 0xVentures, SignumCapital, BwareLabs, SignalVentures, D1Ventures, Faculty Group, DIAAssociation, Zeitgeist, Chainflip, Astar Network, Shiden Network, KodaDot, and others.

Community Sale Details

CoinList announced that the community sale of Subsquid (SQD) will start at 2:00 AM on January 19 (UTC+8) link to Subsquid (SQD) community sale, and registration is now open. Details are as follows:

• Token supply: 53,480,000 SQD (4% of total supply);

• Sale price: $0.094;

• Release rules: 20% released at TGE, followed by linear release over 6 months, with TGE expected to occur on May 15, 2024;

• Initial purchase limit: Minimum $50, maximum $2000 (only USDT/USDC).

• Regions unable to participate: United States, Canada, China, South Korea, and certain other regions.

Additionally, Subsquid may decide to sell an additional 13,370,000 SQD tokens (1% of total supply) during the Subsquid community sale.

Based on the above data, the initial circulating market value of SQD is $5.02 million or $6.28 million, with an FDV of $125 million.

To participate in the Subsquid community sale, ensure registration before the deadline of 8:00 PM on January 15 (UTC+8), and the CoinList Wallet must meet the minimum purchase amount (50 USDT or USDC). Furthermore, users must ensure that they deposit their planned purchase amount into their wallet before the sale starts at 2:00 AM on January 19 (UTC+8).

Tokenomics

The use cases of the SQD token focus on simplifying and securing network operations in a permissionless manner, including:

• Used to reward node operators who contribute computing and storage resources to the network;

• The design of the SQD token includes built-in node governance, facilitating the permissionless selection of trusted operators and rewarding them;

• By locking SQD tokens, data consumers can increase rate limits;

• SQD holders can participate in governance and vote on protocol changes and other proposals.

The token distribution and lock-up situation for SQD are as follows:

• Pre-seed round investors - 12% - Locked for 6 months after TGE, 20% released, followed by linear unlocking over 24 months;

• Seed round investors - 16.3% - Locked for 6 months after TGE, 20% released, followed by linear unlocking over 24 months;

• Strategic Round I investors - 4.6% - Linear unlocking after 12 months post-TGE;

• Strategic Round II investors - 2% - Locked for 6 months after TGE, 25% released, followed by linear unlocking over 18 months;

• Team - 15% - Locked for 6 months after TGE, 20% released, followed by linear unlocking over 24 months;

• Treasury - 28.1% - Linear unlocking after 36 months post-TGE;

• Liquidity treasury - 5% - Used for market making and providing CEX/DEX liquidity;

• Node rewards - 10% - Linear unlocking after 84 months post-TGE;

• Community sale - 5% - 20% released at TGE, linear unlocking over 6 months.