RPIP-62: Tokenomics Rework Prelude
What is the work being proposed?
This grant is in recognition of all the work that went into RPIP-62: ideation, discussion, modeling and drafting of the final RPIP among other things.
Is there any related work this builds off of?
The ideas of the RPIP rely heavily on the full tokenomics rework RPIP-49 being implemented in the near future.
Will the results of this project be entirely open source (MIT, GPL, Apache, CC BY license or similar)? If not, which parts will not be, why, and under what license will they be published?
The full RPIP and reward spec are available are available on GitHub.
Benefit
| Group | Benefit |
|---|---|
| Potential rETH holders | Node operator growth would unlock additional rETH capacity, which allows potential holders to mint rETH. |
| rETH holders | Node operator growth would also deplete the deposit pool, which decreases idle ETH in the system and therefore increases rETH APR. |
| Potential NOs | People who do not wish to hold RPL to stake their ETH will finally get the opportunity to do so within Rocket Pool. |
| NOs | Current node operators will be able to add additional minipools or bond reduce their existing ones without adding to their RPL exposure. |
| Community | Negative growth over the last year has taken a noticeable toll on the community and Discord among other things has been less active. If successful, this RPIP could potentially reverse that trend. |
| RPL holders | Increased protocol TVL correlates with increased RPL value going into Saturn 1. |
Which other non-RPL protocols, DAOs, projects, or individuals, would stand to benefit from this grant?
NodeSet could potentially benefit if Constellation ends up being RPL limited.
Work
Who is doing the work?
@haloooloolo , @samus, @knoshua, @epineph, @Valdorff, @NonFungibleYokem, @sckuzzle, @LenOfTawa.eth, @ramana, @Patches
What is the breakdown of the proposed work, in terms of milestones and/or deadlines?
All the work has already been completed. See cost breakdown for details.
Costs
What is the proposed payment schedule for the grant? How much USD $ and over what period of time is the applicant requesting?
The grant is broken up into an initial fixed payout ($15,000) and variable payout (up to $60,000) based on TVL growth. The distribution among contributors is based on the following mixture of discussion time and individual contributions:
| Contributor | Discussion Time | Discussion Compensation | Individual Contributions | Contribution Description | Initial Payout | Percentage |
|---|---|---|---|---|---|---|
| haloooloolo | 97h 2m | $ 3,921.23 | $2,500.00 | Full RPIP + spec + governance | $6,421.23 | 42.81% |
| samus | 28h 46m | $1,162.50 | $500.00 | CSM comparison sheet + push for higher base commission | $1,662.50 | 11.08% |
| knoshua | 15h 17m | $617.62 | $1,000.00 | Initial RPIP + spec draft | $1,617.62 | 10.78% |
| Epineph | 19h 4m | $770.51 | $500.00 | Pro cliff argument (variant A) | $1,270.51 | 8.47% |
| Valdorff | 30h 33m | $1,234.56 | $0.00 | $1,234.56 | 8.23% | |
| NonFungibleYokem | 7h 56m | $320.60 | $500.00 | Proto voter share | $820.60 | 5.47% |
| sckuzzle | 16h 39m | $672.85 | $0.00 | NO behavior analysis (separate grant) | $672.85 | 4.49% |
| LenOfTawa | 6h 41m | $270.08 | $250.00 | Visualizations + separate RPIP draft | $520.08 | 3.47% |
| ramana | 9h 53m | $399.40 | $0.00 | $399.40 | 2.66% | |
| Patches | 3h 14m | $130.66 | $250.00 | Reward spec review | $380.66 | 2.54% |
| 235h 5m | $9,500 | $5,500 | $15,000 | 100% |
The variable share will be based on TVL growth relative to the block at which the setting changes for RPIP-62 are executed. Every additional ETH of pETH capacity being created will be rewarded with $0.03. Every additional ETH of nETH TVL will be rewarded with $0.30. Concretely, this would put compensation for a new LEB8 at $3.12 and compensation for a bond reduction at $0.96. The variable payout is limited in amount by a $60,000 cap and in time by the launch of Saturn 1. It will follow the same distribution percentages as the initial $15,000 payout.
The exact schedule for the variable compensation share is at the discretion of the GMC, but a partial payout every four weeks is preferred.
Is the applicant requesting RPL or LUSD?
RPL
How will the GMC verify that the work delivered matches the proposed cadence?
The work has already concluded, the impact should be assessed using the criteria defined above.
What alternatives or options have been considered in order to save costs for the proposed project?
It was considered whether NodeSet Constellation alone would be sufficient to support TVL growth going into Saturn. The conclusion was that it would be important to have a solution on the core protocol level.
Conflict of Interest
Does the person or persons proposing the grant have any conflicts of interest to disclose? (Please disclose here if you are a member of the GMC or if any member of the GMC would benefit directly financially from the grant).
@epineph has decided to remove himself from consideration for this grant. It is up to the GMC to decide whether this request is honored and if so, leads to a lower total payout or redistribution to other contributors.
Will the recipient of the grant, or any protocol or project in which the recipient has a vested interest (other than Rocket Pool), benefit financially if the grant is successful?
No