Establishing Guiding Principles for Rocket Pool
The decentralized Ethereum validator service Rocket Pool is currently considering a philosophical proposal that could limit the growth of ETH stakers. The proposal would establish a set of guiding principles for Rocket Pool to follow when managing its staked ether. The author of the proposal, Valdorff, is concerned that some stakers have become too large for Ethereum‘s own good and does not want Rocket Pool to become one of them. If adopted, the proposal would ensure that Rocket Pool remains a responsible staker and does not contribute to the problem of over–sized stakers. This would help to ensure the long–term sustainability of the Ethereum network.
Protecting Ethereum’s Decentralization: Rocket Pool’s Proposal to Limit Its Size
As the Ethereum network continues to grow, the need for decentralization and security is paramount. To ensure the safety of the network, Rocket Pool has proposed a governance vote to establish guiding principles that prioritize the long–term health and decentralization of Ethereum over the success of the protocol. The proposal would limit Rocket Pool‘s size to avoid becoming a single point of failure, and prioritize damaging itself before endangering the stability of Ethereum. With the vote set to end on Feb. 12, the vast majority of votes cast have been in favor of the proposal, demonstrating the commitment to protecting Ethereum‘s decentralization.
Rocket Pool’s Ethos of Self-Limitation
Rocket Pool is a decentralized Ethereum staking protocol that is designed to provide a secure and reliable staking service. It is currently the second largest staking protocol in terms of ETH deposits, with 1.66% of all staked ETH deposits. Despite this, the Rocket Pool community has proposed a self–imposed limit of 22% of all staked ETH, in order to ensure that the protocol is not a single point of failure for Ethereum. This ethos of self–limitation is a testament to the commitment of the Rocket Pool community to providing a secure and reliable staking service.
Rocket Pool Self-Limitation
Rocket Pool, a decentralized autonomous organization (DAO) that provides staking services for Ethereum, is considering self–limiting its operations to protect the network‘s neutrality and stability. The core team has proposed redirecting a percentage of the DAO‘s income to support small permissionless protocols and a 3% fee to mint rETH, with the fee and percentage of the DAO‘s income rising in conjunction with the growth of Rocket Pool‘s dominance of staked ETH. These ideas have been discussed in the community forum but are not being voted on currently. This vote, if passed, would set a framework for future code, allowing the team to effectively react to the current state while anchoring values and not letting them drift over time.
Decentralization-First Mindset for Rocket Pool
The Rocket Pool project is proposing a decentralization–first mindset for staking, with four categories of staking – “healthier staking,” “as good staking,” “not as good staking” and “unhealthy staking” – to guide users. Solo staking, which involves running one‘s own hardware, is considered “healthier” and more decentralized, while Rocket Pool and Stakewise are “as good”. However, centralized exchanges like Coinbase, Kraken and Binance – and even Lido, the most popular liquid staking protocol – are deemed “seriously dangerous to Ethereum’s health”. This proposal is an effort to ensure that Ethereum remains decentralized and secure, and that users can make informed decisions about their staking choices.
Lido Aims for Winner Take All in ETH Staking Derivatives
Lido, the largest staking–as–a–service provider, is aiming for a “winner take all“ approach in the ETH staking derivatives market. With over $8 billion in total staking assets, Lido voted against self–limit inbound stake flow in July 2022. This move could potentially make Lido the dominant player in the ETH staking derivatives market. Lido did not return a request for comment by press time. This decision could have a major impact on the ETH staking derivatives market, and it will be interesting to see how this plays out in the coming months.
Self-Limiting Benefits Ethereum and Rocket Pool
Rocket Pool is a decentralized staking platform that allows users to stake Ethereum (ETH) and earn rewards. Recently, Superphiz, a maintainer of the ethstaker.cc website and node operator, said that self–limiting benefits Ethereum and Rocket Pool in the long run. With over 377,000 ETH worth roughly $593 million staked through Rocket Pool, users can earn up to 4.19% APR for staking and 7.29% APR for staking and running a node. Self–limiting is a great way to ensure long–term financial reward for both Ethereum and Rocket Pool users.
