What is Rocket Pool (RPL)?

Deep Dive

1. Purpose & Value Proposition

Ethereum's proof-of-stake requires 32 ETH to run a validator, which is prohibitive for most. Rocket Pool solves this by being a trustless, decentralized staking pool. Users can stake any amount of ETH and receive rETH, a liquid staking token that accrues rewards over time. This provides accessible staking, maintains liquidity for users, and strengthens Ethereum's decentralization by distributing validator control away from large, centralized services.

2. Technology & Architecture

The protocol is built on a network of node operators who run the validators. A node operator only needs to provide 8 ETH (Rocket Pool), with the remaining 24 ETH supplied by the staking pool. This is managed by Smart Node software, which handles validator duties. Stakers receive rETH, which automatically increases in value relative to ETH as staking rewards accrue. The upcoming Saturn upgrade aims to further prepare the network for scalability (TradingView News).

3. Tokenomics & Governance

The native RPL token serves as collateral for node operators, providing an economic security layer. Node operators must stake RPL alongside their ETH, which helps insure the pool against slashing risks. Governance is conducted through a DAO, where RPL holders vote on protocol upgrades, treasury management, and parameter changes. This ensures the protocol evolves in a permissionless and community-led manner (Rocket Pool).

Conclusion

Fundamentally, Rocket Pool is a community-owned infrastructure layer that democratizes Ethereum staking while prioritizing decentralization. How will its model of distributed node operation influence the long-term security and resilience of the Ethereum network?