Your Depressed Bankrupt Director has another message to share.
The topic of RPL’s tokenomics has been extensively discussed on this forum and in our discord channel. We all understand Rocket Pool has a serious problem: the DAO lacks the money necessary to sustain the ecosystem and there’s not enough, or really any, value-accrual into the RPL token. Without value-accrual, you will not be able to grow and sustain that growth long-term. Even if you do grow, that growth won’t translate to token performance as desired. As one of the original ETH staking protocols, Rocket Pool had an early-mover advantage but risks losing all ground gained without tangible action. @drdoofus has created a channel to start discussing solutions to Rocket Pools problems and you can read some of those discussions here.
AlphaGrowth is delivering on the growth side and actively setting up various types of dealflow for rETH throughout Web3. With current design, Rocket Pool is not positioned to benefit from any of the deals and growth that it rightfully desires. No matter how many users come into the ecosystem, Rocket Pool will not monetize this utilization without serious overhaul. AlphaGrowth can fundamentally alter Rocket Pool’s monetization trajectory and help guide the protocol towards sustainable yield-generation that benefits both the team and the users.
A business that grows consumer pipelines but has no sales doesn’t make sense. Better can be done.
Your supplementary material is a tweet from September 2023.
Tokenomics rework started late 2023, with RPIPs starting drafting ~March 2024 and vote passing end of August 2024. The dev team is currently working on making Saturn a reality.
Here’s an intro piece. Tokenomics Rework | Rocket Pool Improvement Proposals. Ngl, I am more than a little confused how you’ve been highly active in the community without this basic awareness. Or if you’re aware, then I’m confused why you’d pick “supplementary material” that talks about an obsoleted state.
With current design, Rocket Pool is not positioned to benefit from any of the deals and growth that it rightfully desires. No matter how many users come into the ecosystem, Rocket Pool will not monetize this utilization without serious overhaul.
This is just not the case. A major point of the tokenomics rework is directly tying rETH TVL to an ETH revenue stream for RPL, which makes it valuable. The protocol is funded by RPL inflation, so that is also a pretty direct pipeline.
AlphaGrowth can fundamentally alter Rocket Pool’s monetization trajectory and help guide the protocol towards sustainable yield-generation that benefits both the team and the users.
Is there a concrete suggestion? Are you asking for funding or some kind of power before providing the guidance? I’d love to have us do better, so suggest away if you have something concrete. This is the same thing I said within the thread you linked – wanting to do better is a great goal, but it doesn’t mean much without a realistic “how”.
Part of the argument is that we might be unlikely to get much TVL increase without the protocol able to incentivize, bribe, and pay for integrations. It seems this is the new paradigm and that maximizing tokenomics yields for the stakers (active and passive) might not lead us to growth like we hoped.
I am guessing we need more protocol fees, one way or another, to get us out of this slump. Spartan is saying AlphaGrowth can help us use protocol fees wisely to get us increase rETH mints. Hence the reference to my discord thread.
This is more background for people popping in, since obviously you know this since you are contributing to that thread.
@drdoofus is partly correct that AlphaGrowth is proposing a tokenomic rework for RPL to increase its value. Although the X post is from 2023, it’s still relevant to understanding RPL’s current state. However, the ongoing tokenomics rework by Rocket Pool focuses on RPL’s relationship to Node Operators, not the broader ecosystem.
To achieve proper price discovery and reduce sell pressure, RPL needs token velocity and depth. Think of RPL as a separate product that requires its own value proposition. While the DAO will continue to fund itself with RPL inflation, we need to create value for RPL to prevent its price from crashing.
Our proposal aims to bring value to RPL, increase token velocity and depth, and ultimately help with price discovery and reduce sell pressure. AlphaGrowth offers tokenomics audits and proposals to clients under our DeFi Operations services.
Thanks for the alert, Depressed Bankrupt Director. Yeah, big problem if the RPL token can’t accrue any value from its users. Sounds like the overhaul is needed. Thanks for bringing attention to this!
Once again, that’s what the tokenomics rework does. Saturn was not primarily focused on NOs, it worked on the interplay between all the slices of pie (NOs, rETH, RPL, DAO). If anything, the primary focus was RPL.
If you don’t think that’s enough, that’s totally fine, but I’m getting quite annoyed at the implication that we are blind to an issue with RPL tokenomics when it’s literally been the #1 focus for over a year. And because of that, something from 2023 is completely irrelevant – it is talking about a different set of tokenomics that will not exist going forward.
What proposal? Doofus suggested the proposal was the generic “AlphaGrowth can help us use protocol fees wisely to get us increase rETH mints”. Is that what you mean? Do you mean something else?
As currently written, RPL will accrue 9% of ETH revenue from validators. Ie, from a 14% commission, 5% is planned to go to Node Operators and 9% is planned to go to RPL holders. RPL does have inflation, so that’s a bit overstated, but there is very direct value linking users to RPL.