Subsquid Basics — Why a DAO?

In our most recent newsletter (you can subscribe here), CEO Dmitry Zhelezov referred to Subsquid as “web3’s data backbone.” Indeed, we are building much more than just an API framework: We’re creating an entire ecosystem of powerful tools and software solutions capable of processing the many hundreds (and eventually thousands) of terabytes of cross-chain blockchain data that will form the core of the next generation of the internet.

We realize that this is no easy task, and while we’re still in the early stages of Web3’s ‘bootstrapping,’ we are well aware that we cannot (and should not!) do this as a centralised company. Subsquid, therefore, will gradually transfer governance of this ecosystem’s development from the corporate structure to Subsquid DAO.

A DAO? What’s that, now?

A decentralised autonomous organization (DAO) is a Web3-native, community-owned, entity that is governed by a set of rules encoded and maintained on a blockchain. The unique attributes of DAOs make them perfectly suited to bringing large numbers of internet users together to achieve common goals.

Two primary functions of DAOs are, first, to establish a trustless means by which financial resources are distributed in a project, and second, to provide an objective system through which tasks are assigned to members. In other words, members are empowered by the DAO’s rules and tokenomics to agree on a task that needs to be completed, as well as on how much money should be devoted to that cause. DAOs usually deploy automated task management systems that help to administer these bounties and reward participants for work well done — all in a safe and transparent manner.

But… why does Subsquid need this?

The DAO structure, we maintain, will provide at least the following benefits to the Subsquid project:

More Chains: Incentivization of Archive Deployment
Subsquid interfaces with blockchains through Archives — software that gathers historical data and converts it into something that is easy for Squids (APIs) to digest. In Subsquid’s current phase of development, Archives are deployed by our own integrations team. These deployments will be carried out by community members, who will be incentivized by the DAO’s rewards pool.

By taking a community-driven approach, Subsquid DAO will be able to deploy Archives to many more chains than would ever be possible for our integrations team alone. The DAO’s network of Web3 builders will be truly global, capable of finding new chains just as they come into operation. The tokenomics will give a clear reason to developers working on all kinds of chains to bring new networks into an ever-growing multichain ecosystem.

Protocol Robustness: Enhanced security for Subsquid solutions
Dapps that depend on Squids for data will not be able to compete if there is any risk of outages or third-party interference at the Archive layer. Just as the DAO will incentivize the deployment of Archives for more chains, it will also promote redundancy, with multiple Archives for each of those networks, reducing the risk of outages impacting Dapps downstream.

According to our projections, Subsquid DAO will in its very early stages see dozens of Archives deployed to each of the major, currently supported, chains and parachains. Each additional Archive operated on an already-supported network adds one more degree of security and censorship resistance to all Squid-powered applications.

Dapp Development: More, better, decentralised applications
As we intend to discuss in more detail in future posts, the data processing and storage functions of Squid APIs will, in Subsquid DAO, be provided by a distributed, token-incentivized, network of operators. Competition between these operators, we expect, will lead to improved service in the form of greater security and reduced latency.

The Open Ocean Council Program

Of course, nobody has ever said that building a DAO is easy. Based on our own observation of dozens of other DAO projects, we know that it will take time and a great deal of well-thought-out strategy to build a community with the dedication and know-how needed to ensure that solutions like those provided by Subsquid succeed.

The Open Ocean Council Program (OOCP), which has already been running for a number of months, is intended to serve as an incubator for the DAO. Currently, the Program is divided into two teams — ‘Abyss,’ which completes technical tasks, and ‘Sonar,’ which focuses on growing the community.

How to join the OOCP

Currently, there is no barrier to entry for the Open Ocean Council Program. Anybody can become a member by subscribing to Subsquid’s official Telegram and Discord. Members of both Team Abyss and Team Sonar can already earn XP — and demonstrate their dedication to Subsquid — simply by participating in the community through the various discussion channels.

The Subsquid Core Team periodically posts tasks — referred to as ‘quests’ — for OOCP members to complete. This is done automatically through a bot on the Subsquid Discord server, called the Quest Management System (QMS), as well as through a Github repository. Rewards for quests are typically paid out in USDT and SQD tokens.

Quest Management System

The QMS is a task management bot that has been deployed to the Subsquid Discord server. Members of both teams can review the latest available quests by visiting the #abyss-board or #sonar-board channels. These can be reached through the menu on the left.

When a new quest becomes available, it can be reserved by clicking the ‘Claim’ button. Afterwards, applicants will most likely be contacted by an admin, who may ask to see their portfolio or inquire as to their skill set.

Once the work has been completed, the applicant can click the ‘Submit for Review’ button.

For a more thorough QMS tutorial, please visit this link.

Subsquid’s Github Repository

Completing tasks on Subsquid’s issue board should be a fairly straightforward process for Team Abyss members, who should already be familiar with Github. The general guidelines for these tasks are provided in the CONTRIBUTING.md file.

Become an Ambassador

Another great way to make your mark in the Open Ocean Council (and secure your spot in Subsquid DAO) is to apply to become a Subsquid ambassador. The Subsquid Ambassador Program is an excellent opportunity for anyone interested in getting involved with Web3 to learn new skills, network with like-minded people, and have an impact on the DAO in its early days. In the long run, Ambassadors will also receive priority access to events, NFT distributions, airdrops, meetups, and early software releases.

To apply for the Ambassador Program, you can start by reviewing the details provided on our official website. Within a few days of submitting your application, you will receive an email from the Subsquid core team with additional instructions.

Subsquid’s Official Channels

Email list: https://eepurl.com/hBOqLT

Website: https://subsquid.io/

Twitter: https://www.twitter.com/subsquid

Discord: https://discord.gg/5cQBWHWJvW

Telegram: https://t.me/subsquid

Subsocial: https://app.subsocial.network/@subsquid

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Subsquid

We are building a data backbone for #Web3. APIs and analytics on 33 networks (and counting). http://t.me/subsquid & http://discord.gg/subsquid