RPL is the ERC-20 native utility token of the Rocket Pool ecosystem, a decentralized Ethereum staking platform. RPL can be staked on a Rocket Pool node as insurance. ^[1][2][3]

Migration

In November 2021, a new Rocket Pool protocol token was released and the old Rocket Pool token was migrated using the Rocket Pool staking website.^[4][5]

Tokenomics

RPL follows a different approach than most fixed-supply DeFi tokens and introduced a 5% annual inflation. The protocol argues that any value-generating protocol will need to reward its participants. A fixed-supply model would result in this value being generated at the expense of its users. ^[3]
RPL inflation is initially 5% pa and is allocated as follows:

• Node Operators staking RPL as insurance collateral (70%)
• Oracle DAO members providing various oracle data (15%)
• Protocol DAO Treasury to fund decentralized development (15%)

This model incentivizes key stakeholders and supports decentralized development. The Oracle DAO comprises Node Operators who report Oracle data accurately, while the Protocol DAO governs the protocol's treasury. ^[3]

Utility

Network Participation

RPL token holders can use their tokens to run their Rocket Pool nodes and participate in the network as a node operator. By running a node, users can contribute to the security and decentralization of the network and earn rewards for providing staking services. ^[1]

Governance

RPL token holders have the right to participate in the governance of the Rocket Pool platform. They can vote on proposals and decisions that impact the protocol's development, upgrades, and parameters. The governance model ensures the community has a say in the platform's evolution. ^[1]

Protocol Fees

RPL token holders can use their tokens to pay for protocol fees for premium services or features on the platform. This maintains the platform's operations. ^[1]