After Ethereum fully transitioned to a proof-of-stake (PoS) consensus mechanism, the high threshold of 32 ETH (approximately $79,000) became a barrier for ordinary users to participate in network validation. In 2016, Australian blockchain developer David Rugendyke created Rocket Pool —— A decentralized staking protocol aimed at democratizing Ethereum staking, allowing users to participate with a minimum of only 0.01 ETH. Today, it has become a critical infrastructure within the Ethereum ecosystem, managing over 200,000 ETH in assets and attracting over 1,000 node operators.
Core Mechanism: Dual-track Staking and Dual Token Model
Rocket Pool’s core innovation lies in reducing participation barriers and decentralizing risk through smart contracts and a DAO (Decentralized Autonomous Organization) structure:
rETH Liquid Staking: Ordinary users can stake any amount of ETH (minimum 0.01 ETH) to receive rETH tokens. rETH is an interest-bearing token whose value automatically accumulates staking rewards over time and can be freely traded or used in DeFi applications (such as Uniswap Liquidity Mining).
Node Staking (Minipools): Technical users only need to stake 16 ETH (half of a standard validator), and Rocket Pool will automatically match another 16 ETH to form a complete validation node. Node operators can earn revenue from three parts:
ETH Staking Rewards
User Staking Fee
Additional RPL token incentives.
The protocol is supported by two DAOs: the Protocol DAO is responsible for governance decisions, while the Oracle DAO is responsible for cross-chain data synchronization, ensuring the secure transfer of state between the Ethereum mainnet and the beacon chain.
RPL Token: Dual Value of Governance and Insurance
RPL is the native governance token of Rocket Pool, with a fixed total supply of 18 million coins and a current circulating supply of approximately 19.99 million coins. Its core functions include:
Governance Rights: Holders can vote on upgrades to protocol parameters (such as inflation rate, staking rules);
Node Insurance: Node operators are required to pledge RPL (usually 10%-150% of the value of staked ETH) as a safeguard against possible slashing risks. If a node acts maliciously, a portion of the RPL will be destroyed;
Yield Bonus: Nodes that stake RPL can earn additional RPL rewards (currently approximately 10%+ annualized).
RPL Price Prediction: Market Sentiment and Key Catalysts
As of April 2025, the trading price of RPL is approximately $4.35, a drop of 93% from its all-time high of $64.2 (April 2023). Analysts have differing opinions on its future trajectory, but it is generally believed that the following factors will drive an increase:
In the short term (mid-2025 to the end of the year), if the Ethereum upgrade Pectra is implemented and staking inflows increase, RPL may break through $38. If the competing protocol Lido faces regulatory pressure, Rocket Pool may capture market share, pushing the price to test $45.
Mid-term (2026) accompanied by Ethereum price Strengthening (such as breaking through 10,000 USD) and an increase in staking demand may stabilize RPL at 50–60 USD. In a bullish scenario, it could reach 75–120 USD.
In the long term (2027+), if Rocket Pool becomes the preferred decentralized staking layer for Ethereum, and the RPL staking economy expands, the price may challenge 150 dollars.
Risk Warning: Challenges Not to Be Ignored
Despite the positive outlook, investors should be aware of the following risks:
Intense Competition: Liquid staking providers such as Lido dominate, while EigenLayer’s re-staking protocol diverts user demand;
Regulatory uncertainty: The US SEC may define staking tokens as securities, increasing compliance costs;
High dependence on ETH: RPL price strongly related to the scale of Ethereum staking, if ETH price A sharp drop or saturation in staking rates will put pressure on RPL.
Conclusion: Value Capture of Infrastructure
Rocket Pool is essentially a pipeline for the democratization of Ethereum staking. By lowering the node entry barrier (16 ETH), providing liquidity solutions (rETH), and implementing risk socialization mechanisms (RPL insurance pool), it has become an indispensable piece of the PoS ecosystem.
Although RPL has experienced significant short-term volatility, its value is ultimately anchored in the long-term growth of the Ethereum staking market. If Ethereum becomes the global settlement layer as expected in 2026-2027, RPL may rise from its current low and regain the glory of three years ago.
