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
Copyright and related rights waived via CC0.
Citation
ShfRyn, "RPIP-69: Increasing GMC Share of Inflation [DRAFT]," Rocket Pool Improvement Proposals, no. 69, 2025-24-05. [Online serial]. Available: https://rpips.rocketpool.net/RPIPs/RPIP-69.