RPIP-49 Tokenomics Rework

This vote is to ratify the core RPIP-49 Tokenomics Rework set. This includes the following RPIPs:

• RPIP-42: Bond Curves
• RPIP-43: Megapools
• RPIP-44: Integrating Execution Layer Triggerable Exits
• RPIP-46: Universal Adjustable Revenue Split
• RPIP-47: Enable Forced Delegate Upgrades
• RPIP-59: Deposit Mechanics
• RPIP-60: Protocol Upgrade Guardrails

Note that RPIP-49 is an informational RPIP describing the set and does not need to be ratified.

Several items in the set are to be considered flexible until ratified explicitly, rather than ratified alongside the tokenomics rework package as a whole. They are:

• Saturn 2 Surplus Share Strategy
• Vote Eligible RPL Targets
• Deposit Strategy
• Penalty System
• When the security council should change node operator commission

Each item is described in more detail in RPIP-49. Any other significant issues the development team identifies that impact their ability to deliver this upgrade may also require future votes.

Rationale

The current structure has contributed significantly to dampening Rocket Pool’s growth. When Node Operators (NOs) are unwilling to take on the required RPL exposure to start minipools, rETH supply is constrained. When NOs are unwilling to top off to get RPL rewards, the premise of RPL’s value capture fails (and can even backfire if NOs opt to exit minipools in order to receive RPL rewards).

The RPIP-49 rework looks to:

• separate out the roles in the overall system (especially allowing ETH-only operation and allowing RPL to gain value from total TVL)
• listen to the market to determine how much value each group should receive
• increase capital efficiency with smaller bonds

Outcome If Positive

The pDAO asks the development team to begin implementation work on the RPIP-49 Tokenomics Rework set, leading to the Saturn protocol upgrades. The RPIPs contained in the set will be marked with the 'Living' status.

The outstanding flexible items in the specification will have one or more snapshot votes to ratify their final form, once all of these items are resolved the RPIPs will be set to 'Final' status.

Outcome If Negative

The RPIP-49 Tokenomics Rework set is not approved at this time. The authors suggest a new vote in approximately one month that would include all rework proposals (see context below) that have formal RPIP specifications at that time, but this would be a new governance action.

Context

Alternative Rework Proposals

There are two alternative rework proposals that have mutually exclusive elements. They are:

• The 1kx proposal, which retains the RPL collateral requirement and introduces delegated staking.
• The ib1gymnast proposal, which reduces the RPL bond requirement, uses smaller ETH bonds and maintains the 14% commission.

These proposals do not yet have formal specifications that are ready for a snapshot vote. Voters should vote against the RPIP-49 rework in this vote if they prefer the direction outlined in one of these proposals.

Resources and Debate

• The Tokenomics Rework page which contains explainers and overview content
• A Q&A video with two of the main authors, courtesy of the Rocket Fuel podcast
• The rework sentiment vote
• Discussion Threads including critiques from NodeSet and 1kx.