Rocket Pool

This vote aims to align RPL reward spend with rETH capacity created.

Summary

• RPL rewards will scale differently, with a focus on aligning RPL rewards with supplying rETH
• It will be possible to withdraw down to 15% borrowed ETH (this threshold is currently 150% of bonded ETH)
• We will transition to the new states over time (some implementation time, six reward periods of ramping, and fully implementing the withdrawal changes will need a smart contract release)
• Withdrawing will become a 2-step process where RPL is set to “withdrawing” for 28 days before it can be withdrawn

Rationale

The goal is to align the DAO’s spending on RPL rewards with the DAO’s goals. In particular, we’ll continue to send 70% of inflation to Node Operators, but better align it far more with the amount of minted rETH.

Please read the Intro document’s context section for a visual representation of spending before and after this change.

Outcomes if vote passes

• RPL rewards will scale differently
  • Adding a minipool will increase RPL rewards (even if you already had enough staked RPL)
  • Converting an EB16 to two LEB8s will increase rewards (even if you already had enough staked RPL)
  • You will still need staked RPL value of ≥10% borrowed ETH to get RPL rewards [unchanged]
  • Staking more RPL will mean more rewards [unchanged], though now without a maximum (note that marginal APR gets lower and lower as more is staked)
  • Beyond 15% borrowed ETH, additional rewards go up slower and slower
  • The rewards changes will be phased in slowly over 6 months
• It will be possible to withdraw down to 15% borrowed ETH
• RPL withdrawal will become a 2-step process
  • Set X RPL to “withdrawing”; these RPL are no longer eligible for rewards or voting
  • After 28 days, the RPL may be withdrawn
  • The new rules will be partially phased in over time, and then fully implemented with the next smart contract release
  • Note that this will apply to all withdrawals, even ones that would currently be instant
  • Note that this will not apply to claiming rewards, as that isn’t a withdrawal
• Once the 2-step process is implemented, the current “28-day withdrawal lock when you stake RPL” will be removed
• These changes will apply equally to both existing and new NOs

Context

• Intro document live on Val’s rp-thoughts repo or archived printout in RPIP repo
• Forum thread
• Full RPIP
• Deep dive links (a section within the intro document)