SQD is the native ERC-20 token of the Subsquid Network, an ecosystem that provides decentralised infrastructure for querying and processing Web3 data at scale. The Subsquid Network addresses challenges of accessing, aggregating, and querying blockchain and off-chain data, enabling efficient data retrieval without relying on centralised systems. The network architecture includes components such as workers, data providers, schedulers, and reward managers, ensuring trustless and scalable operations.

The SQD token is deployed on the Ethereum mainnet and bridged to Arbitrum One. It is essential for operations within the Subsquid Network, enabling functionalities such as data query validation, resource allocation, and governance.

SQD serves multiple purposes within the Subsquid Network ecosystem:

• Incentives for Network Operations: Workers who contribute storage and computation resources earn SQD as rewards. These rewards are calculated based on factors like uptime, data served, and delegated token amounts.

• Delegation and Staking: SQD tokenholders can delegate their tokens to workers, supporting reliable nodes and earning a share of the rewards.

• Query Resource Allocation: Users of the network lock SQD to access resources such as data queries. The locked tokens yield "compute units" (CU), which determine the query bandwidth available to the user.

• Governance: SQD tokenholders can participate in governance decisions, influencing protocol changes and resource allocation policies.

• Reward Pool and Ecosystem Growth: A fixed percentage of the SQD token supply is allocated to a rewards pool for incentivising network participation during the initial bootstrapping period. Future adjustments to token supply and reward mechanisms will be determined via governance.