🔥_🔥 x Rocket Pool
🔥_🔥 (Fire Eyes DAO) is excited to announce our collaboration with Rocket Pool — Ethereum’s leading decentralised ETH2 staking solution, gearing up for its launch alongside Phase 0.
We see the development towards Ethereum 2.0 as one of the most impactful shifts the community has seen. As such, being able to contribute to the incentive mechanisms underpinning the security, adoption, and growth of ETH2 is meaningful for the wider Ethereum ecosystem.
Staking ETH in a community-owned fashion is core to the inherent decentralization of the Ethereum protocol.
This article details 🔥_🔥’s work around Rocket Pool Improvement Proposal 3 (RPIP-003) which introduces changes to the usage of the RPL token, native RPL inflation, and the introduction of community governance; all with the goal to incentivize protocol growth and protect against deficits.
Introducing RPIP-003
RPIP-003 addresses three key components of the Rocket Pool protocol:
- Validator Staking Requirements
- Native RPL Inflation
- Protocol Governance
RPL Staking
RPIP-003 proposes a new system where each Rocket Pool validator requires some level of RPL collateralization to:
- Economically align validator incentives to protect the deposit pool against slashing.
- Protect the entire Rocket Pool protocol against being leveraged as a collective ETH2 attack mechanism.
- Enter validators into the Rocket Pool DAO as a means of token-based governance.
The minimum collateralization ratio is included to protect users in the case validators are slashed beyond 16 ETH (while collateralized validators are protecting the rETH pool against said slashing).
Higher levels of RPL collateralization give validators higher weighting in RPL reward distribution. More details discussed in RPIP-003.
RPL Inflation
Validators are rewarded for network participation and security based on staked RPL, commission rate, and validator liveness (validator performance). These rewards are introduced by native RPL inflation directly incentivizing Rocket Pool security and growth.
🔥_🔥 proposes the introduction of RPL inflation paired with capped validator slots at genesis to reward early adopters for their role in bootstrapping the network.
Outside of validation, 🔥_🔥 is developing a suite of RPL incentives inclusive to the broader Rocket Pool ecosystem, including those providing value in the form of rETH liquidity, RPL governance, and non-validator RPL staking.
The introduction of inflation allows value-added actors to accrue RPL by playing an active role in the protocol, its governance, and its future growth.
By requiring RPL collateral to protect the deposit pool and collect inflationary rewards, the Rocket Pool protocol offers rETH protection along with a clear-cut demand mechanism for RPL as the ongoing amount of ETH staked grows.
While the minimum collateralization ratio is likely to be a fraction of the total amount of ETH staked, 🔥_🔥 is currently mapping out RPL rewards to incentivize over-collateralization and a healthy, demand intensive network launch.
RPL Governance
Those staking RPL for value-added actions receive governance weight over the Rocket Pool DAO, a decentralized collective focused on coordinating protocol parameters, implementations, and funding.
In addition to the Rocket Pool DAO, the protocol will feature a ‘Trusted Node DAO’, a collective of verified node operators acting as oracles for ETH2 data. This allows Trusted Nodes to be added to the Rocket Pool Network in a permissioned and transparent way, as their role is crucial to the ongoing sustainability of the protocol.
More details around RPL governance coming SoonTM!
Full RPIP-003 here: https://hackmd.io/@aEoiD4cHR1SyfYmaiR-u3w/HkaS2Z3Hv
Discord Discussion here: https://discord.gg/BmjG2hz
Rocket Pool Beta
Each day, Ethereum comes one step closer to the start of Phase 0.
After seeing the dedication and conviction of the Rocket Pool team and their development of the protocol, 🔥_🔥 is excited to participate in Ethereum’s most inclusive staking solution.
To bootstrap network launch, Rocket Pool started the Medalla Incentivized Beta on October 6th.
With a rewards pool of 10,000 RPL, this beta is the very last step preceding the launch of Phase 0, meaning anyone reading this post should do their best to get involved at whatever level they are comfortable with, supporting Rocket Pool and the wider Ethereum ecosystem!
ETH2, RPIP-003, and 🔥_🔥
After deep diving on the Rocket Pool protocol & RPL token we’re confident the introduction of RPIP-003 serves as one of the most meaningful shifts in the RPL token and protocol to date; as well as driving the community to participate in protocol direction & decision making.
To join us in the ongoing conversation around RPL, RPIP-003, and all things Rocket Pool, join the Discord and be on the lookout for more updates in the coming weeks!
🔥_🔥 is excited to play a key role in the evolving web3 ecosystem and the development of new, innovative token models that explore the morality behind effective, sustainable governance.
Keep an eye out for 🔥_🔥 on one of the many governance forums coming to a community near you.
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James Waugh| Lucas Campbell| Callum Gladstone| Cooper Turley
