Summary

1. About this Report
2. Proposal-Info
3. ANALYSIS
1. ■Impact on the Ecosystem
2. ■Governance Compliance
3. ■Cost-Benefit Ratio
4. ■Transparency and Traceability
5. ■Track Record and Credibility
4. Evaluation
5. Voting

About this Report

vonFlandern has developed a methodology to analyze and evaluate OpenGov proposals as objectively, effectively, and transparently as possible. The goal is to create clear and structured decision-making foundations for our own voting—and to make these visible to the community.

Proposal-Info

SQD (fka Subsquid) - Public Data Indexing Infrastructure for Polkadot and Kusama (Q3 2024)

Track: 33 | Origin: MediumSpender | Amount: 310.592 USDT

Summary of the proposal

Core Issue
Subsquid Labs aims to secure funding for the continued operation and development of free public SQD archives, which provide essential access to on-chain data for public chains within the Polkadot ecosystem.

Ecosystem Impact
The archives are critical to the functionality of numerous important projects and dApps in the Polkadot ecosystem, as they enable efficient access to the on-chain data these applications rely on.

Proposed Action
Subsquid Labs is requesting 310,592.98 USD from the Polkadot Treasury to cover the costs of operating and improving the public SQD archive service during Q3 2024.

Expected Outcomes
The funding will ensure uninterrupted access to free data services, support dependent projects, and enable infrastructure scaling to meet the growing data demands of the ecosystem.

■Question 1 of 19

Does the proposal measurably contribute to the long-term development, adoption, resilience, or relevance of Polkadot?

The proposal from Subsquid Labs measurably contributes to Polkadot’s long-term development and resilience by maintaining and enhancing the SQD Archives, which provide free on-chain data access for public chains. This infrastructure supports numerous ecosystem projects, such as Tanssi Network and Talisman Wallet, by enabling efficient data queries and exploration. Addressing a 3.6-fold increase in data demand in Q3 2024, the proposal scales infrastructure and introduces technical upgrades like Substrate Extrinsic v5 support. These improvements ensure Polkadot can handle growing data needs, fostering adoption and relevance. The decentralization of the SQD Network, with 1,139 active Worker Nodes, further bolsters resilience by distributing data processing, reducing risks of failure. Funding these services secures a critical component for Polkadot’s sustained growth and stability.

Justification

The SQD Archives are vital for ecosystem projects, and their enhancement ensures Polkadot’s ability to support increasing activity. Scaling and technical upgrades meet current and future demands, while decentralization strengthens the network’s robustness. This collective effort drives Polkadot’s long-term development and adoption.

Score: 9/10

■Question 2 of 19

What sustainable added value does the proposal bring to the Polkadot ecosystem in the long term, beyond the immediate project duration?

The proposal delivers sustainable added value to Polkadot by ensuring the SQD Archives remain a reliable, free data resource beyond the immediate funding period. This ongoing accessibility empowers developers to innovate without financial hurdles, fostering a vibrant ecosystem. Technical enhancements, such as compatibility with newer Substrate versions and updated Squid templates, keep the archives relevant as blockchain technology evolves. The decentralized SQD Network strengthens scalability and resilience, creating a lasting infrastructure that supports future growth. By removing data access barriers and enhancing technical capabilities, the proposal attracts new projects and sustains existing ones, ensuring Polkadot’s competitiveness and vitality well into the future.

Justification

Maintaining and improving the SQD Archives provides a durable foundation for data access, encouraging continuous development. Technical adaptability and decentralization ensure long-term utility and robustness, supporting Polkadot’s growth beyond the project’s immediate scope.

Score: 8/10

■Question 3 of 19

Is an existing structural weakness addressed?

The proposal addresses a key structural weakness in Polkadot by securing the operation and enhancement of the SQD Archives, which are essential for data accessibility across the ecosystem. Without this infrastructure, projects would struggle to retrieve on-chain data, potentially stalling development. By funding infrastructure scaling to meet rising data demands and implementing technical upgrades, the proposal ensures robust data access. The decentralization of the SQD Network further mitigates risks tied to centralized data reliance, enhancing ecosystem resilience. These efforts collectively resolve a critical vulnerability, strengthening Polkadot’s foundational infrastructure to support both current and emerging projects effectively.

Justification

The dependence on accessible data is a weakness that the proposal counters by sustaining and decentralizing the SQD Archives. This addresses immediate needs and prevents future disruptions, fortifying Polkadot’s structure.

Score: 8/10

■Question 4 of 19

Does the proposal promote interoperability, user retention, or parachain development?

The proposal promotes interoperability and parachain development by enhancing the SQD Archives, which provide critical data access for Polkadot’s public chains and parachains. Updated to support newer Substrate versions, the archives enable seamless integration and development of parachains, fostering interoperability across the ecosystem. Free data access encourages developers to build and maintain dApps, supporting user retention by reducing costs and enhancing usability. Infrastructure scaling ensures the ecosystem can accommodate growing activity, further aiding project development and user engagement. These improvements create a cohesive, developer-friendly environment that strengthens Polkadot’s network connectivity and growth potential.

Justification

The SQD Archives facilitate parachain development and interoperability through reliable data access and technical compatibility. Cost-free services and scalability enhance user retention and ecosystem expansion, aligning with Polkadot’s goals.

Score: 7/10

■Result category 1

Total score: 32/40 | Average: 8.00/10 (80%)

■Question 5 of 19

Does the proposal clearly fall within the scope of the chosen origin (Treasury, Tipper, Spender)?

The proposal distinctly aligns with the MediumSpender origin, requesting $310,592.98 to sustain and enhance SQD Archives, which provide critical on-chain data access for Polkadot’s public chains. With a current DOT price of approximately $3.70, this equates to roughly 83,944 DOT, well within the MediumSpender’s 100,000 DOT limit. The MediumSpender track is designed for significant ecosystem projects requiring substantial but not excessive Treasury funds, and this proposal’s focus on infrastructure supporting numerous dApps and parachains matches this purpose. By addressing a core ecosystem need, the proposal fits the scope of MediumSpender, ensuring appropriate use of Treasury resources.

Justification

The MediumSpender origin supports impactful projects with budgets up to 100,000 DOT, and the proposal’s amount and purpose—maintaining essential data infrastructure—align precisely with this track’s objectives. The calculated DOT value confirms compliance with financial constraints, reinforcing the proposal’s fit within the origin’s scope.

Score: 8/10

■Question 6 of 19

Are there previous proposals with comparable content, and if so, what were their outcomes?

The proposal references referendum #1447, a prior submission likely funding SQD Archives for an earlier quarter, indicating comparable content. While specific details on #1447’s outcomes are not fully accessible, its execution suggests it was approved and successfully implemented, establishing a precedent for community support. Polkadot’s Treasury has a history of funding similar infrastructure projects, such as data services and node operations, which further supports the relevance of this proposal. The recurring nature of Subsquid Labs’ requests reflects ongoing ecosystem needs, with past approvals implying positive outcomes in maintaining data access.

Justification

The executed status of referendum #1447 indicates successful funding and delivery, setting a strong precedent. The Treasury’s pattern of supporting infrastructure projects aligns with this proposal, confirming its place within established funding trends, though limited outcome details slightly temper the evaluation.

Score: 7/10

■Question 7 of 19

Is the governance system being used meaningfully or burdened?

The governance system is used meaningfully by this proposal, which leverages the MediumSpender track to secure funding for SQD Archives, a vital ecosystem component. Subsquid Labs provides detailed cost breakdowns, metrics on data demand, and technical achievements, fostering transparency and enabling informed community oversight. This approach aligns with OpenGov’s principles of decentralized decision-making. The proposal addresses a legitimate need without overwhelming the system, as its scope and frequency are consistent with Treasury funding practices. By supporting critical infrastructure, it enhances the governance process’s utility, ensuring resources are allocated effectively.

Justification

The proposal’s thorough documentation and alignment with MediumSpender’s purpose demonstrate respectful use of the governance framework. It avoids frivolous submissions, focusing on a high-impact project, which strengthens the system’s integrity and supports its role in ecosystem development.

Score: 8/10

■Result category 2

Total score: 23/30 | Average: 7.67/10 (77%)

■Question 8 of 19

Is the requested amount proportionate to the potential or demonstrated benefit?

The requested $310,592.98 appears proportionate to the demonstrated and potential benefits of maintaining SQD Archives, which provide free on-chain data access for Polkadot’s public chains. These archives supported 11.44 TiB of data transfer and 979,736 requests in Q3 2024, enabling critical operations for projects like Tanssi Network and Talisman Wallet. The proposal addresses a 3.6-fold increase in data demand through infrastructure scaling and technical upgrades, ensuring ecosystem reliability. This supports developer activity and network growth, justifying the expenditure. While precise cost-per-benefit metrics are challenging without benchmarks, the archives’ pivotal role suggests the amount aligns with the substantial benefits delivered.

Justification

The archives’ critical function, handling significant data volumes and supporting numerous projects, indicates high value. The cost, roughly $103,531 monthly, is reasonable for infrastructure and development, given the ecosystem-wide impact, though lack of detailed cost breakdowns slightly limits precision.

Score: 8/10

■Question 9 of 19

Is the budget framework reasonable compared to similar proposals?

The budget of $310,592.98 is reasonable when compared to similar Polkadot Treasury proposals funding infrastructure. Referendum #1447, a prior SQD Archives funding request, was executed, suggesting a similar budget was approved. Polkadot’s history of funding data services and node operations typically involves budgets between $100,000 and $500,000 quarterly. At approximately 83,944 DOT (based on $3.70 per DOT), the amount fits within the MediumSpender track and aligns with norms for maintaining critical ecosystem services. Without specific budgets from other proposals, the precedent and scale suggest reasonableness.

Justification

The executed #1447 and typical funding ranges for infrastructure confirm the budget’s alignment with community standards. The amount supports complex operations, but limited direct comparisons prevent a higher score.

Score: 7/10

■Question 10 of 19

What specific added value does the Treasury or network gain in return for this expenditure?

The Treasury and network gain substantial added value through sustained free data access, infrastructure scalability, and enhanced decentralization. The SQD Archives enable developers to build and maintain dApps without cost barriers, fostering innovation and adoption. Scaling to handle 11,713 GiB of data demand and technical upgrades like Substrate extrinsic v5 support ensure reliability and compatibility. The SQD Network’s 1,139 Worker Nodes enhance security and fault tolerance, strengthening Polkadot’s resilience. This expenditure supports ecosystem growth, attracting projects and enhancing network competitiveness.

Justification

Free data access, scalability, and decentralization directly benefit the ecosystem, supporting numerous projects and aligning with Polkadot’s goals. The tangible outcomes, like increased data handling and technical enhancements, provide clear value, warranting a high score.

Score: 9/10

■Question 11 of 19

Were cheaper alternatives considered?

The proposal does not explicitly address cheaper alternatives, leaving uncertainty about whether other options were explored. Subsquid Labs’ established role, supporting critical projects and handling 574 TB of data, suggests their service is uniquely integrated. Alternatives like cloud providers could theoretically host data, but replicating the free access model and decentralization might incur similar costs. The ecosystem’s reliance on SQD Archives implies switching providers could disrupt operations, making Subsquid a practical choice, though lack of discussion on alternatives limits cost-efficiency clarity.

Justification

Subsquid’s integration and the archives’ critical role justify their selection, but the absence of alternative exploration reduces transparency. The practical necessity of maintaining service continuity supports a moderate score.

Score: 6/10

■Result category 3

Total score: 30/40 | Average: 7.50/10 (75%)

■Question 12 of 19

Is it clearly communicated how and for what purposes funds will be used—including KPIs, milestones, metrics?

The proposal communicates that the $310,592.98 will fund the development and maintenance of SQD Archives for public chains like Polkadot and Kusama, with past metrics such as 11.44 TiB of data served and 979,736 requests in Q3 2024. It mentions achievements like Substrate extrinsic v5 support, indicating development focus. However, it lacks specific future KPIs, milestones, or metrics for the funding period, making it difficult to track progress. While past performance is detailed, the absence of forward-looking targets or deliverables reduces clarity on how funds will be evaluated, limiting evidence-based assessment.

Justification

The proposal provides general fund usage and historical metrics but omits future-oriented KPIs and milestones, essential for tracking outcomes. This partial communication hampers the ability to evaluate the proposal’s impact during the funding period.

Score: 5/10

■Question 13 of 19

Are budgets, timelines, and work packages clearly specified?

The proposal specifies a total budget of $310,592.98 for Q3 2024, covering archive operations and development contributions. However, it lacks a detailed breakdown of costs, such as infrastructure versus personnel expenses, and does not outline specific work packages or deliverables. Timelines are implied as quarterly but not explicitly defined, with no clear schedule for tasks. This lack of granularity reduces transparency, making it challenging to assess the efficiency or appropriateness of fund allocation and hindering traceability of resource use.

Justification

While the total amount and general purpose are stated, the absence of detailed budgets, work packages, and explicit timelines limits clarity. This incomplete specification affects stakeholders’ ability to track spending and project progress.

Score: 5/10

■Question 14 of 19

Are there success criteria for later evaluation?

The proposal does not define explicit success criteria for evaluating the outcomes of the funded activities. It presents past achievements, such as handling increased data demand and technical upgrades, but lacks specific benchmarks or goals for Q3 2024. Without predefined criteria, such as target data volumes or development milestones, it is difficult to objectively assess the proposal’s effectiveness or impact post-funding. This omission significantly weakens the ability to conduct evidence-based evaluations, reducing accountability for the expenditure.

Justification

The lack of success criteria prevents clear measurement of the proposal’s outcomes, a critical component for transparency and accountability. Past metrics are insufficient without future targets, leading to a low score.

Score: 3/10

■Question 15 of 19

Is documentation or reporting planned?

The proposal includes a link to raw data metrics, such as data transfer volumes for Q3 2024, but does not explicitly outline a plan for documentation or reporting. While the provided spreadsheet offers usage statistics, there is no commitment to regular progress reports, expenditure updates, or structured documentation. This limits the community’s ability to track fund usage and project outcomes systematically. A formal reporting plan would enhance transparency, but its absence suggests limited mechanisms for ongoing oversight and evaluation.

Justification

The raw data is a starting point, but without a clear reporting plan, traceability is compromised. A structured commitment to documentation would better support evidence-based tracking, warranting a moderate score.

Score: 4/10

■Result category 4

Total score: 17/40 | Average: 4.25/10 (43%)

■Question 16 of 19

Have the proposers or involved organizations made verifiable, traceable contributions to the ecosystem?

Subsquid Labs has made verifiable, traceable contributions to the Polkadot ecosystem through their development of the SQD Archives, which provide free on-chain data access for public chains like Polkadot and Kusama. These archives support numerous projects, including Tanssi Network and Talisman Wallet, enabling efficient data queries. Subsquid also maintains open-source tools, such as the Squid SDK, which facilitates data indexing for Substrate-based chains. Their contributions are evidenced by active GitHub repositories and partnerships with ecosystem projects, demonstrating a significant and traceable impact on Polkadot’s data infrastructure and developer community.

Justification

The SQD Archives and open-source tools are critical ecosystem components, with usage metrics and public repositories confirming their impact. Partnerships further validate Subsquid’s contributions, though minor gaps in detailed contribution history slightly temper the score.

Score: 9/10

■Question 17 of 19

What projects have been successfully implemented so far?

Subsquid Labs has successfully implemented the SQD Archives, which handled 11.44 TiB of data and 979,736 requests in Q3 2024, supporting public chains and projects like Polkassembly. They developed the Squid SDK, a TypeScript toolkit for data indexing, and templates for Substrate chains, enhancing developer capabilities. The decentralized SQD Network, with 1,139 Worker Nodes storing 574 TB, strengthens Polkadot’s infrastructure. Technical upgrades, such as Substrate extrinsic v5 support, further demonstrate their ability to deliver impactful projects that support the ecosystem’s growth and resilience.

Justification

The SQD Archives, Squid SDK, and decentralized network are tangible, high-impact projects, with metrics and partnerships confirming success. The lack of exhaustive project details slightly limits the score, but the evidence is robust.

Score: 8/10

■Question 18 of 19

Are there publicly accessible references (e.g., code repositories, publications) or community feedback supporting the proposers’ credibility?

Subsquid Labs’ credibility is supported by publicly accessible references, including GitHub repositories like the Squid SDK and Substrate template, which provide open-source code and documentation for developers. Their website offers guides and resources, enhancing accessibility. Partnership announcements with projects like Talisman and Astar Network, published on Medium, highlight their role in providing data solutions. These references, combined with active maintenance of repositories and integrations with major Polkadot projects, affirm Subsquid’s credibility as a trusted contributor to the ecosystem.

Justification

The availability of GitHub repositories, documentation, and partnership announcements provides strong evidence of credibility. While community feedback is not assessed per guidelines, public references are comprehensive, warranting a high score.

Score: 9/10

■Question 19 of 19

Is the team capable of delivering the promised outcomes?

Subsquid Labs appears capable of delivering the promised outcomes of maintaining and enhancing the SQD Archives. Their track record includes scaling infrastructure to meet a 3.6-fold data demand increase and implementing technical upgrades like Substrate extrinsic v5 support. The successful execution of prior referendum #1447 and partnerships with projects like Talisman demonstrate operational and technical expertise. Managing a decentralized network with 1,139 Worker Nodes further indicates their ability to handle complex systems, supporting confidence in their delivery of the proposal’s objectives.

Justification

Past achievements and partnerships confirm Subsquid’s technical and operational capabilities. The lack of specific team details slightly limits certainty, but their proven performance supports a strong evaluation.

Score: 8/10

■Result category 5

Total score: 34/40 | Average: 8.50/10 (85%)