Rocket Pool Price (RPL)

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About Rocket Pool (RPL)

Rocket Pool (RPL) is a decentralized Ethereum staking protocol allowing individuals to earn rewards on their ETH holdings by participating in Ethereum 2.0's Proof-of-Stake consensus mechanism. It enables users with less than the required 32 ETH to stake, to participate in the network by pooling their resources. RPL is the native utility token of the platform used for protocol governance, and incentivizing node operators.

    Rocket Pool Frequently Asked Questions (FAQ)

      What is the minimum ETH required to run my own node with Rocket Pool?

      The minimum ETH required to run your own node with Rocket Pool is 16 ETH.

      Can Rocket Pool node operators charge fees for staking on their nodes?

      Yes, Rocket Pool node operators can charge a fee for staking services. This fee is a percentage of the RPL rewards that stakers earn and is automatically subtracted by the protocol.

      Is the Rocket Pool staking process audited by external firms for security?

      Yes, the Rocket Pool staking process has been audited by external security firms to ensure the protocol is secure and reliable for users.

      How is the APR for ETH and RPL rewards calculated for Rocket Pool node operators?

      The APR for ETH rewards for Rocket Pool node operators is calculated based on the actual staking rewards generated by the Ethereum network, proportionate to the total amount of ETH staked. The APR for RPL rewards is based on the Rocket Pool protocol's own incentive structure, which includes factors such as the participation in the network, the total amount of RPL staked, and the RPL rewards allocated for node operators. Both APRs are dynamically calculated and may change based on network conditions and protocol parameters.

      What is the RPL token inflation rate per year, and how are the new tokens distributed?

      The RPL token inflation rate targets 5% per year. New tokens are distributed as rewards to node operators and stakers within the Rocket Pool network to incentivize participation and secure the network.

      What happens to the staked ETH if a node in the Rocket Pool network behaves maliciously or underperforms?

      If a node in the Rocket Pool network acts maliciously or underperforms, it can be penalized or slashed. The ETH staked by that node can be reduced as a result. However, Rocket Pool has an insurance mechanism in place. Part of the rewards from all nodes contributes to an insurance pool that can compensate stakers partially for any lost funds due to node misbehavior. Additionally, node operators must also provide a collateral in the form of Rocket Pool's native token, RPL, which can be slashed to offset potential losses.

      What is rETH, and how does it relate to ETH staked through Rocket Pool?

      rETH is the token representation of ETH that has been staked within the Rocket Pool network. When users stake their ETH through Rocket Pool, they receive rETH in return, which reflects their share of the pooled ETH stake plus any earned staking rewards. It allows for liquidity and can be traded or used in DeFi applications, meanwhile representing the holder's interest in the network's staking performance.

      How are governance decisions made within the Rocket Pool network?

      Governance decisions within the Rocket Pool network are made through a decentralized process involving RPL token holders. Proposals can be submitted by any member of the community and RPL holders vote on these proposals. The outcome is determined by the majority of votes, with voting power proportional to the amount of RPL tokens held by each voter. This ensures that all decisions are made in the best interest of the network and its participants.

      What kind of insurance mechanisms are in place to protect the value of rETH?

      Rocket Pool implements a decentralized network of node operators and stakers, with safeguards that include the minipool staking system, collateral staking by node operators, and socialized loss distribution in extreme cases. However, there are no traditional insurance policies explicitly protecting the value of rETH - users participate at their own risk with the security of the protocol and its smart contract design serving as the primary protection measures.

      Who qualifies to become a member of the Oracle DAO in Rocket Pool and what is their role?

      To qualify as a member of the Oracle DAO in Rocket Pool, an individual must run a trusted node that has a good performance history and holds a significant amount of RPL tokens. Their role is to help determine the network’s RPL price, the total RPL bonded amount, and the total ETH staked in Rocket Pool, ensuring the system functions efficiently and effectively.