Rebalance RPL Inflation for Protocol Funding (RPIP-81)
AI summary
This proposal, RPIP-81, aims to increase funding for the Rocket Pool decentralized autonomous organization (pDAO) by rebalancing the distribution of newly minted RPL tokens. It proposes to reduce the share of RPL inflation going to Node Operators from 70% to 50% before the upcoming Saturn 2 upgrade, and then eliminate Node Operator rewards entirely after Saturn 2. The freed-up RPL will be redirected to the pDAO to cover operational costs and development needs, which have been impacted by the declining price of RPL.
If passed, the Rocket Pool pDAO will receive a larger share of RPL inflation, providing more resources for protocol development, support, and other obligations. Node Operators will see a reduction in their RPL rewards sooner than initially planned, but their rewards were already slated for removal with Saturn 2. The internal allocation of pDAO funds will also shift, with the General Management Committee (GMC) receiving a larger percentage.
Voting results
Votes over time
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🐳 Whale votes
12 votes > 5% VPFull proposal
Summary
Rebalance RPL inflation allocation to increase pDAO protocol funding during and after the Saturn 2 transition.
Rationale
Rocket Pool’s current RPL denominated protocol funding has declined significantly in dollar terms due to the decline in RPL price. The GMC has already made multiple rounds of cuts, but current funding is near break even for basic recurring costs and does not provide enough runway for protocol needs such as support, rescue node costs, Chainlink, Saturn 2 related work, business development, and other obligations.
This proposal redirects part of the curre…