What is Rocket Pool (RPL)?

Deep Dive

1. Purpose & Value Proposition

Rocket Pool solves Ethereum staking’s high capital requirement (32 ETH) and technical complexity. By pooling ETH from users and distributing it to node operators, it democratizes participation. Stakers receive rETH, a liquid token that grows in value as rewards accumulate, avoiding lockups. Node operators can start with 16 ETH (half the usual minimum) and earn fees, while also staking RPL as insurance against penalties.

2. Technology & Architecture

The protocol uses Smart Nodes—custom software that automates validator management and distributes penalties across the network, reducing individual risk. rETH operates via audited, non-custodial smart contracts, ensuring users retain control. Rocket Pool’s decentralized node network contrasts with centralized competitors, aligning with Ethereum’s ethos (Rocket Pool).

3. Tokenomics & Governance

RPL serves dual roles:
- Collateral: Node operators must stake RPL (≥10% of ETH staked) to backstop potential penalties.
- Governance: Holders vote on protocol upgrades via decentralized proposals (e.g., RPIPs).
The RPL rewards system incentivizes operators to maintain performance, creating a self-reinforcing ecosystem.

Conclusion

Rocket Pool is a decentralized staking infrastructure that balances accessibility, liquidity, and Ethereum’s decentralization principles. By lowering ETH staking thresholds and enabling rETH’s DeFi integration, it bridges individual and institutional participation. As Ethereum evolves, how might Rocket Pool adapt to maintain its competitive edge in liquid staking?