Rebalance RPL Inflation#376
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Valdorff
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May 25, 2026
Valdorff
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May 25, 2026
| Before Saturn 2, 70% of RPL inflation is directed to Node Operator RPL rewards. When Saturn 2 takes effect, those Node Operator RPL rewards will go away entirely. This RPIP proposes a phase out of those rewards pre-Saturn 2 by redirecting part of the current Node Operator RPL issuance to pDAO protocol funding immediately, and to preserve that funding after Saturn 2. | ||
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| ## Specification |
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This section currently has a lot of content beyond spec. I'd suggest moving to rationale/abstract as desired, and making a tighter spec. Here's a suggestion you can use or not as you wish:
## Specification
- The reward percentages **SHALL** be set using the on-chain pDAO proposal system
- This may be proposed using the Smartnode CLI command: `rocketpool pdao propose rewards-percentages --node 0.5 --odao 0.025 --pdao 0.475`
- This on-chain proposal vote must be passed to implement the change from this vote
- The pDAO inflation shares SHALL be adjusted, and updated in [RPIP-10](RPIP-10.md)'s `Historical budget splits` section:
- Incentives of pDAO inflation SHALL be adjusted to 30%
- Grants and Bounties share of pDAO inflation SHALL be adjusted to 40%
- Reserve Treasury share of pDAO inflation SHALL be adjusted to 30%
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This RPIP proposes rebalancing RPL inflation allocation to increase protocol funding during and after the Saturn 2 transition.
At a high level, it would reduce the pre-Saturn 2 Node Operator RPL inflation share from 70% to 50%, increase the pDAO share from 27.5% to 47.5%, and leave the oDAO share unchanged at 2.5%. It also updates the internal pDAO allocation policy and amends the Saturn 2 inflation target so that annual RPL inflation would fall to 2.5% rather than 1.5% after Node Operator RPL rewards are removed.