/biz/ - Business & Finance

RPL fair valuation calculation. 0.02 is the fee that's charged on income generated by pooled eth and distributed among staked rpl. It uses the eth roi as the discount rate, which I think makes the most sense, as every staker already accepts that return.
eth_staked_by_users*eth_roi*0.02*(1/eth_roi)/rpl_supply = eth_staked_by_users*0.02/rpl_supply
for millions of rpl (18M) and eth, this calculation simplifies to just
2*0.02/18 = 0.00(2)ETH/RPL for 4M total eth (users stake half).

For 18.9M total eth staked the result is the current price - 0.011ETH/rpl.

The hard truth is that rpl was and is overvalued, but at least the current model creates a sustainable valuation. The previous locking model was a mirage because of ico whales that bought below 0.001ETH/RPL - the prices were a ceiling for node owners, not fair value. The 0.1ETH valuation was always a meme. Just one biggest whale has 5.446M RPL, almost certainly enough for all nodes during the first two years. Eth staking launch would be a cash out event.
The new rpl staking model gives a fair value that's independent of whales - it only depends on the amount of staked eth in rocketpool and fee as a percentage.