# RPL

> RPL is the native utility token of the Rocket Pool ecosystem, an ERC-20 token on Ethereum, used for staking and insurance within the protocol.

- Canonical URL: https://iq.wiki/wiki/rpl
- Categories: Cryptoassets
- Created: 2023-05-19T15:28:39.069Z
- Last updated: 2023-06-12T15:49:19.358Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**RPL** is the [ERC-20](https://iq.wiki/wiki/erc-20) native utility token of the [Rocket Pool ](https://iq.wiki/wiki/rocket-pool)ecosystem, a decentralized [Ethereum](https://iq.wiki/wiki/ethereum) [staking](https://iq.wiki/wiki/staking) platform. RPL can be staked on a [Rocket Pool](https://iq.wiki/wiki/rocket-pool) node as insurance. [\[1\]](#cite-id-1vf0f85msu6)[\[2\]](#cite-id-944e1e7nry9)[\[3\]](#cite-id-7ygu5igbzsp)  
  
  
# Migration  
  
In November 2021, a new [Rocket Pool](https://iq.wiki/wiki/rocket-pool) protocol token was released and the old Rocket Pool token was migrated using the Rocket Pool [staking](https://iq.wiki/wiki/staking) website.[\[4\]](#cite-id-c8ej6dsop9k)[\[5\]](#cite-id-421d8pfl235)  
  
# Tokenomics  
  
RPL follows a different approach than most fixed-supply [DeFi](https://iq.wiki/wiki/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. [\[3\]](#cite-id-7ygu5igbzsp)  
RPL inflation is initially 5% pa and is allocated as follows:  
  
* Node Operators [staking](https://iq.wiki/wiki/staking) RPL as insurance collateral (70%)  
* Oracle [DAO](https://iq.wiki/wiki/dao) members providing various [oracle](https://iq.wiki/wiki/oracle) data (15%)  
* Protocol DAO Treasury to fund decentralized development (15%)  
  
This model incentivizes key stakeholders and supports decentralized development. The Oracle [DAO](https://iq.wiki/wiki/dao) comprises Node Operators who report Oracle data accurately, while the Protocol DAO governs the protocol's treasury. [\[3\]](#cite-id-7ygu5igbzsp)  
  
# Utility  
  
## Network Participation  
  
RPL token holders can use their tokens to run their [Rocket Pool](https://iq.wiki/wiki/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. [\[1\]](#cite-id-1vf0f85msu6)  
  
## 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. [\[1\]](#cite-id-1vf0f85msu6)  
  
## 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. [\[1\]](#cite-id-1vf0f85msu6)