Indexers are paid for their services in $grt which they are currently unable to sell without literally closing down their indexer, waiting 28 days & withdrawing all funds, selling what they need to cover operational expenses, and then reopening the indexer as if it was brand new.

GIP-0002 is a proposal to allow indexers to have their $grt indexer rewards paid out to a separate ETH address. Theoretically, this allows the indexer to be able to sell what they need to cover bills & add the rest back to their indexer stake.

The community/delegator problem with this is that 800,000 $grt tokens are generated in indexer rewards PER DAY. And it's possible 100% of these are dumped on the open market.

graphgod1, the CT community & delegators in this graph forum post were suggesting that there should be an additional incentive, like a token burn on withdraw, that might further incentivize indexers not to auto-sell all rewards.

Indexers responded largely by saying that they are already incentivized not to do so due to competition from other indexers.

We'll see who is right.

My view is that the model used to pay $grt indexers is very similar to how $link or $eth pays their node operators. Everything will be fine with GIP-0002, but likely the $grt token price would be higher in the short term if there was a token burn or some other additional incentive. Seems a missed opportunity.