Rebalance RPL Inflation for Protocol Funding (RPIP-81)

Summary

Rebalance RPL inflation allocation to increase pDAO protocol funding during and after the Saturn 2 transition.

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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 current Node Operator RPL inflation share to pDAO protocol funding. Node Operator RPL rewards are already expected to be eliminated with Saturn 2. This proposal begins that transition earlier by reducing the Node Operator share of RPL inflation from 70% to 50% before Saturn 2.

This proposal also updates the internal pDAO allocation policy to 30% IMC, 40% GMC, and 30% Reserve Treasury. This is not a decrease for IMC. It is a smaller percent of a larger number, keeping IMC absolute allocation the same.

This vote requires the 75% supermajority threshold for an RPIP modifying RPL inflation allocation.

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Outcome if Positive

• RPIP-81 proceeds to implementation.

• Before Saturn 2, an on-chain pDAO proposal will be made to set RPL rewards allocation to:

  • 50% Node Operators

  • 47.5% pDAO

  • 2.5% oDAO

• The internal pDAO allocation policy will be updated to:

  • 30% IMC

  • 40% GMC

  • 30% Reserve Treasury

• After Saturn 2, Node Operator RPL rewards will be removed as planned and annual RPL inflation will be set to 2.5% instead of 1.5%.

• After Saturn 2, RPL rewards allocation will be set to:

  • 0% Node Operators

  • 95% pDAO

  • 5% oDAO

• The internal pDAO allocation policy will remain 30% IMC, 40% GMC, and 30% Reserve Treasury unless changed by a later vote.

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Outcome if Negative

• RPL inflation allocation remains unchanged before Saturn 2.

• The current internal pDAO allocation policy remains unchanged.

• Saturn 2 inflation remains as currently specified unless changed by a later vote.

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Context

• RPIP-81: https://rpips.rocketpool.net/RPIPs/RPIP-81

• Sentiment Poll Thread: https://dao.rocketpool.net/t/rebalance-rpl-inflation-for-protocol-funding-sentiment-poll/3949