Explore fresh RPL price analysis, as Rocket Pool is reworking its tokenomics in a new initiative aiming to solve all pressing issues and encourage more people to hold RPL crypto.
Bitcoin has remained pretty much the same since its launch. Satoshi Nakamoto set the baseline, and other developers picked it from there.
On the other hand, Ethereum has been improving gradually, introducing changes and adapting to user demand.
From Homestead to Ethereum 2.0, developers are still hunched at work, scaling the platform.
Other protocols have followed suit. From the BSC Chain to the BNB Chain, Uniswap issuing tokens and upgrading their protocol, to MakerDAO introducing Spark – changes are necessary.
Rocket Pool Reworking On Tokenomics: Could it Supercharge RPL Price?
Following the same route, Rocket Pool, one of the top Ethereum liquid staking protocols, is redesigning its tokenomics to revitalize growth and hopefully unlock what developers say is the platform’s “true potential.”
After The Merge, Rocket Pool and other liquid staking platforms like Lido Finance have been responsible for adding thousands of nodes to the broader Ethereum network. Currently, there are over 1 million validators, making Ethereum one of the most decentralized.
Even with this success, Rocket Pool faces some limitations that would be solved with this tokenomics change. Before changes are made, there will be community discussions to gather sentiment.
Of note is that the initial design linked RPL, the Rocket Pool native token, and ETH staking, creating unnecessary complexities.
Since RPL prices are volatile, like tokens, validators were impacted as their rewards moved with the token’s performance.
Specifically, this was made worse by the need for node operators to maintain a minimum 10% RPL collateralization ratio.
DISCOVER: The Best Altcoins to Accumulate for Big Returns in 2024
What It Means For Node Operators And RPL Holders: Path to $40?
Aware of these challenges, developers will be decoupling RPL and ETH staking in the new redesign. This means that staking ETH via the platform would no longer require RPL, which is a welcomed change for node operators.
Subsequently, holding RPL will be more attractive, and there will be a door for even more gains for those who choose to stake both RPL and ETH.
Interestingly, RPL inflation will be reduced from 5% to 1.5% since rewards for node operators will be replenished from external sources.
Perhaps a notable change is the introduction of small bonds in Rocket Pool. The adjustment allows for more efficient capital usage and higher returns than solo staking.
Rocket Pool will offer a 71.2% boost for every 1.5 ETH bond in this arrangement. Accordingly, node operators can choose their desired RPL stake level at any time, improving capital efficiency and accessibility.
Final implementations will depend on whether the community is on board or not.
A governance vote will decide the final path taken. However, what’s clear is that this tokenomics rework, if it goes through, will be a critical turning point for Rocket Pool.
(RPLUSDT)
Looking at RPL price analysis, the token is up 25% from May lows but still a long way from March 2024 highs. A break above the local resistance at $25 could set the ball rolling for a near 100% spike to $40–or higher.
EXPLORE: Crypto Regulation Up In Air As EU Elections Get Underway
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.
Free Bitcoin Crash Course
- Enjoyed by over 100,000 students.
- One email a day, 7 days in a row.
- Short and educational, guaranteed!
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
