RPIP-69: Increasing GMC Share of Inflation Source

Increase the GMC share of inflation to increase growth and efficiency
RPIP69
AuthorShfRyn
StatusFinal
TypeProtocol
CategoryCore
Requires 10
Created2025-24-05
DiscussionLink
Vote Link
Vote Date2025-04-19

Contents

RPIP-69: Increasing GMC Share of Inflation Source

Increase the GMC share of inflation to increase growth and efficiency

Abstract

This RPIP increases the share of inflation to the GMC from 20.5% to 25%. The share to the Reserve Treasury is reduced from 29.5% to 25% to fund this.

Specification

  • GMC share of pDAO inflation SHALL be adjusted to 25%
  • Reserve Treasury share of pDAO inflation SHALL be adjusted to 25%

Rationale

Increasing Budget

The GMC has refined its processes over two years and has demonstrated efficiency in fund allocation. A larger budget allows for:

  • More flexibility in funding initiatives that drive protocol growth.
  • Strategic spending adjustments in response to market conditions, especially given the decline in RPL’s price.
  • Potential future increases in GMC member compensation, though this would require a separate community vote.

Treasury Considerations

The current inflation distribution is:

  • IMC / Incentives: 50%
  • GMC / Grants and Bounties: 20.5%
  • Reserve Treasury: 29.5%

Proposed options discussed for reallocation included:

  • Option A: IMC 50%, GMC 25%, Reserve Treasury 25%
  • Option B: IMC 52.5%, GMC 22.5%, Reserve Treasury 25%
  • Option C: IMC 50%, GMC 22.5%, Reserve Treasury 27.5%

The most favored option in voting was Option A, which increases the GMC share to 25% while maintaining incentives and reserve funding at reasonable levels.

Addressing Broader Budget Concerns

The reserve treasury funds more than just excess funds; it covers the development team’s expenses and will likely be required to support the upcoming security council. The development team already consumes 18% of the pDAO share, and reducing the reserve treasury further could impact funding available for future needs.

Additionally, a shift in oDAO allocations within the recently approved RPIP-68 has reduced the IMC budget. While the IMC has had to cut back, balancing the budget remains a challenge. Some proposals suggested adjusting the splits further to ensure IMC and GMC remain financially sustainable while maintaining a reasonable treasury reserve.

Copyright and related rights waived via CC0.

Citation

ShfRyn, "RPIP-69: Increasing GMC Share of Inflation," Rocket Pool Improvement Proposals, no. 69, 2025-24-05. [Online serial]. Available: https://rpips.rocketpool.net/RPIPs/RPIP-69.