What is Rocket Pool (RPL)?

Deep Dive

1. Purpose & Value Proposition

Rocket Pool solves a core Ethereum problem: solo staking requires 32 ETH and technical expertise. The protocol democratizes access by letting users stake any amount. It pools these deposits, distributing them across a decentralized network of node operators who run the validators. This creates a non-custodial, permissionless staking service that upholds Ethereum's decentralization ethos, unlike centralized alternatives.

2. Technology & Architecture

Users deposit ETH and receive rETH, a liquid staking token whose value increases over time, reflecting accrued staking rewards. This rETH can be used across DeFi. The protocol uses a Minipool system where node operators stake a portion (e.g., 16 ETH) and are matched with user deposits to form a full 32 ETH validator. A key innovation is chunking, which splits large deposits into smaller units (e.g., 4 ETH) and distributes them pseudo-randomly across many node operators, minimizing single points of failure.

3. Tokenomics & Governance

The RPL token has a dual utility. First, node operators must bond RPL as collateral against the user ETH they manage, aligning incentives. Second, RPL holders govern the protocol through the Rocket Pool DAO via the Rocket Pool Improvement Process (RPIP). A major shift occurred with the Saturn One upgrade, which activated a "fee switch," allowing RPL stakers to earn a share of the protocol's ETH revenue, transitioning RPL's value accrual from inflation to real usage.

Conclusion

Fundamentally, Rocket Pool is a community-owned infrastructure layer that makes Ethereum staking resilient, accessible, and aligned with the network's decentralized principles. How will its evolving node operator economics influence the broader landscape of trustless crypto services?