--- permalink: /protocol/faq --- # Frequently Asked Questions This FAQ section aims to complement the [explainer series of articles](/en/protocol/explainer-series) with concise answers to common questions we receive. ![Rocket Pool FAQs](/images/headers/faq.png) ## General [**What is Proof of Stake?**](#what-is-proof-of-stake) _A brief overview of what Proof of Stake is and why it is awesome._ [**What does Rocket Pool do?**](#what-does-rocket-pool-do) _A quick introduction into what Rocket Pool actually does._ [**Why would I need to use it?**](#why-would-i-need-to-use-it) _Good question and hopefully even better answers._ [**How does it work?**](#how-does-it-work) _Smart contracts, smart nodes & decentralised infrastructure._ [**Independent node operator vs Staking as a Service (SaaS) provider?**](#independent-node-operator-vs-staking-as-a-service-saas-provider) _Protocols can be used by everyone, from regular users to professional SaaS providers._ [**What tokens does Rocket Pool use?**](#what-tokens-does-rocket-pool-use) _We use two tokens. RPL and rETH. Find out more here._ [**Who's making it?**](#who-is-making-it) _It's not aliens or lizard people. Well, fairly sure anyway._ ## Staking [**What is the minimum deposit?**](#what-is-the-minimum-deposit) _I’ll save you a scroll, it’s 0.01 ETH._ [**What is the maximum deposit?**](#what-is-the-maximum-deposit) _I’ll save you another scroll, there's no fixed limit, but deposits can only be accepted while the deposit pool has room._ [**What are the staking periods?**](#what-are-the-staking-periods) _None for both stakers and node operators. Come and go as you please._ [**How much does it cost to stake with Rocket Pool?**](#what-commissions-are-possible-when-staking-with-rocket-pool) _We don't take a cut at all, instead all node operators that power the protocol get variable based commissions_ [**How does the protocol protect the value of rETH?**](#how-does-the-protocol-protect-the-value-of-reth) _Our top priority! We have lots of features in place._ [**What is a decentralised staking protocol exactly?**](#what-is-a-decentralised-staking-protocol-exactly) _OK, expect your mind to be blown._ [**How can I access my deposit and rewards?**](#how-can-i-access-my-deposit-and-rewards) _I heard something about withdrawals not being allowed for a while..._ [**Are your smart contracts audited and open source?**](#are-your-smart-contracts-audited-and-open-source) _For sure! Betas, audits, audits and more audits._ ## Node Operators [**Why would I run a Rocket Pool smart node vs going solo?**](#why-would-i-run-a-rocket-pool-smart-node-vs-going-solo) _A fraction of the ETH required (4 ETH instead of 32) and earn ETH commissions + extra RPL rewards, boom!._ [**What is the minimum staking amount for a node operator?**](#what-is-the-minimum-staking-amount-for-a-node-operator) _It’s 4 ETH, would you like to know more?_ [**What is involved in running a Rocket Pool node?**](#what-is-involved-in-running-a-rocket-pool-node) _Some ETH and uptime, uptime, uptime._ [**How is the RPL token used?**](#how-is-the-rpl-token-used) _Stake RPL on your node to earn a share of protocol revenue and extra RPL rewards!_ ## dApps, SaaS Business and more [**Can I build on top of the protocol or use it in my SaaS business?**](#integrated-dapps-saas-business-and-more) _Get your dApp connected with decentralised staking or run a node in the network and generate higher returns!_ ## Contact [**Website**](https://www.rocketpool.net/) _Contact us here via email or just read up on Rocket Pool._ [**Discord**](https://discord.gg/rocketpool) _Drop by for a chat and ask some questions, we’re a friendly bunch._ [**Doc Hub**](https://docs.rocketpool.net/) _You’re reading it :) But there’s a few more articles to be found…_ --- ### What is Proof of Stake? Proof of Stake is a consensus protocol used in Ethereum. It is different from the Proof of Work (PoW) protocol, which you may have heard of before, because Bitcoin uses PoW. With a decentralised blockchain, these consensus protocols help keep everyone on the same page, so we all know what transactions have been processed and in what order. This is known as validation. Ethereum has a Proof of Stake (PoS) chain called the Beacon Chain, which is faster, more energy efficient and more decentralised than PoW. It's powered by users depositing ETH and providing an Ethereum node online 24/7 to perform the required validation. As a reward for providing the node, the Beacon Chain gives node operators additional ETH on top of their deposits. It can be viewed similarly to earning interest in a bank account, with the exception that these rewards are generated in return for helping secure the network. ### What does Rocket Pool do? Rocket Pool is the base layer protocol for decentralised and trustless Ethereum staking. Designed to support stakers of all shapes and sizes, Rocket Pool was built with the intent to allow anyone to trustlessly stake as little as **0.01** ETH to a network of decentralised node operators with full autonomy underpinned by node operator ETH bonds (a type of collateral that ensures good behavior). You can stake **ETH** by trading it for **rETH**, a [token which gains staking rewards over time](https://medium.com/rocket-pool/rocket-pool-2-5-tokenised-staking-48601d52d924#92b0) based on the performance of an entire network of decentralised node operators. You can also stake **4 ETH** per validator as a node operator in the protocol, earn rewards on your own stake fee free, plus earn commissions and RPL rewards from the network, generating a higher ROI by staking in the protocol vs staking outside of it as a solo node operator. ### Why would I need to use it? Rocket Pool removes several high barriers to entry that exist with Proof of Stake on Ethereum for both individuals, groups and businesses. - The Beacon Chain requires a deposit of at least **32 ETH**. Rocket Pool will allow anyone to earn rewards on deposits as small as **0.01 ETH**. - Depositing ETH with the Beacon Chain will also require the user to have knowledge on how to interact with smart contracts. Rocket Pool handles all interactions with the Beacon Chain for you. - With Rocket Pool you instantly get our rETH token when depositing. This is a tokenised staking deposit which gains rewards over time and doesn't need to be locked with us. It can be traded/sold/held at any time providing our users with liquidity. It can also be traded back to Rocket Pool for ETH plus rewards at any time if there is liquidity available. - The Beacon Chain will require a user who makes a deposit to be technically proficient at running an Ethereum node 24/7 and keeping that node online and secure. Rocket Pool has a decentralised network of independent Ethereum node operators that provide this service. - The Beacon Chain will penalise users who make a deposit but fail to keep their node online. Rocket Pool socialises any penalties or losses that occur on nodes across the whole network which minimises the effect greatly for any single user. - Some users may be confident in running their own node but do not have the 32 ETH required for the deposit. If they join Rocket Pool's decentralised network of Ethereum node operators, they only need 4 ETH minimum to solo stake. They also get the added benefit of receiving extra income from the network for providing this service which generates a higher ROI than staking solo. ### How does it work? Hold tight, this is a meaty one! The protocol is primarily composed of 3 main elements, smart contracts, the Smart Node Network and Megapools. - Our smart contracts take ETH deposits from stakers (minting rETH in return), match them with node operators' validators, and manage rewards, governance and the protocol's tokens. - Our Smart Node Network is a decentralised network of special Ethereum nodes that run our Smart Node software. They feature custom background processes that allow them to communicate with the protocol's smart contracts, and just as importantly, provide the network consensus (validation) required by the Beacon Chain. - Any user can run one of these Smart Nodes and stake their own ETH fee-free if they have the minimum 4 ETH required. For providing the protocol with a Smart Node, the user also receives extra rewards from the network on top of the rewards they earn staking their own ETH. If they also stake RPL on their node, they earn a share of protocol revenue (the [voter share](/node-staking/megapools/staking-and-claiming-rewards#how-voter-share-is-distributed-to-megapool-rpl-stakers)) and RPL rewards. - Megapools are another smart contract, but they're worth defining on their own because they're such a key part of the protocol. Each node has a single megapool that can hold many validators. Each validator pairs a 4 ETH bond from the node operator with 28 ETH from rETH stakers (users who want to stake without running a node). Together that's 32 ETH, which creates a new validator on the node that performs consensus duties and earns staking rewards. Neat! ### Independent node operator vs Staking as a Service (SaaS) provider? Rocket Pool protocols support a wide array of actors, including independent node operators and service providers. Web3 is full of highly knowledgeable Staking as a Service providers, helping the world better access the proof of stake landscape with projects like Ethereum. They support everything from institutional capital, to hedge funds, family offices and everything in between. Rocket Pool was designed to support those providers, meaning ETH staked through SaaS solutions can be put to use through Rocket Pool, rather than having to spin up bespoke staking solutions to deal with each client. ETH holders can choose between paying a SaaS provider or being paid to be an operator themselves. With Rocket Pool, SaaS providers and independent operators maximize their return by being paid to run a node, both in ETH and RPL. The protocol allows teams to run their own infrastructure, and use Rocket Pool to trustlessly stake ETH in batches of 4 ETH per validator — putting their capital to work further and earn a larger share of returns. This design means a large staking provider or exchange could use Rocket Pool the same as a DeFi power user. Simply show up with 4 ETH and you’re treated the same as any other node operator. Rocket Pool’s democratized staking system doesn’t favor any one party, as ETH staked through Rocket Pool always directly supports the network. Rocket Pool’s staked ETH wrapper, rETH, is the purest in DeFi because of the Rocket Pool network being fully distributed and trust-minimised. This makes rETH a natural building block for Ethereum and providers of all kinds. ### What tokens does Rocket Pool use? **RPL — Rocket Pool Protocol Token** RPL is the primary protocol token that will be used in governance of the protocol and can also be staked on a Rocket Pool node. From a Node Operator perspective: - As of Saturn 1, vote-eligible staked RPL will get a share of total protocol revenue - [Half](https://rpips.rocketpool.net/RPIPs/RPIP-25) of RPL inflation is given as rewards to Node Operators based on staked RPL; these rewards are planned to be phased out with Saturn 2 - For Saturn 0 minipools made after 10/28/2024: Staked RPL provided up to 4% additional bonus commission. The bonus ended in June 2026, four rewards intervals after Saturn 1's launch. - Staked RPL provides voting power for governance From a protocol perspective: - A [minority](https://rpips.rocketpool.net/RPIPs/RPIP-25) of RPL inflation provides funding for the pDAO - A [minority](https://rpips.rocketpool.net/RPIPs/RPIP-25) of RPL inflation provides funding for the oDAO - For legacy minipools, staked RPL serves as secondary collateral **rETH — Rocket Pool Staking Deposit Token** When a user deposits into the protocol, they will instantly receive the rETH token which represents a tokenised staking deposit and the rewards it gains over time in the Rocket Pool network. This token does not need to be locked within the network and it can be traded, sold or held as the user desires. This token can also be traded back to the protocol for ETH + rewards earned at any time, providing there is sufficient liquidity in the protocol to meet the trade. ### Who is making it? Rocket Pool was originally started in [late 2016 by David Rugendyke](https://medium.com/rocket-pool/rocket-pool-your-new-casper-friendly-ethereum-pos-pool-in-alpha-75709bd19936), a senior developer with over 18 years commercial experience and a computer science background. In May 2017, an alpha version of the product was released. A vibrant community started to form and the team began expanding. With the help of an enthusiastic community, Rocket Pool ran five public betas with over 100,000 ETH (testnet) staked and hundreds of users participating, before the official launch on Ethereum mainnet in October 2021. Today there is a great team working on Rocket Pool passionately alongside a fantastic community of more than three thousand node operators. --- ### What is the minimum deposit? Rocket Pool protocol allows anyone to earn rewards on deposits as low as 0.01 ETH. When you trade ETH, you will receive rETH, a token that gains staking rewards over time based on the performance of all decentralised node operators in the protocol. ### What is the maximum deposit? There's no per-user limit. Deposits are accepted as long as the deposit pool has room; its maximum size is set by the pDAO, and a deposit that would exceed it is rejected. ### What are the staking periods? If you just want to stake you will receive our rETH token when you deposit. You can then do as you want with this token, it will still gain staking rewards over time and can be sold/traded or traded back to Rocket Pool for ETH + rewards if there is liquidity available for the trade. If you want to run a node in the network, you can stake as a node for as little or long as you wish. The longer you stake, the more rewards you gain of course. ### What commissions are possible when staking with Rocket Pool? Under Saturn 1's Universal Adjustable Revenue Split (UARS, [RPIP-46](https://rpips.rocketpool.net/RPIPs/RPIP-46)), node operator commissions come from rewards generated by the 28 ETH borrowed from the rETH staking pool for each megapool validator. The total commission is 14%, split into a 5% base commission share paid to every megapool node operator and a 9% [voter share](/node-staking/megapools/staking-and-claiming-rewards#how-voter-share-is-distributed-to-megapool-rpl-stakers) distributed proportionally to node operators who stake RPL on their megapool. The commission and its split are adjustable by pDAO governance vote rather than fixed; the values above are the ones Saturn 1 launched with. Legacy minipools are not part of this split and keep the commission set in their own contract. ### How does the protocol protect the value of rETH? Our smart contracts are responsible for holding and moving funds. In the interest of transparency, they are [open source](https://github.com/rocket-pool/rocketpool) for all to analyse. Additionally, before the smart contracts were deployed to mainnet they were fully audited by both Sigma Prime and ConsenSys Diligence, two of the best auditing teams around. Rocket Pool is a decentralised network of node operators. If you are a non-operator staker, your deposit will be allocated to a node operator who will perform Proof of Stake duties. Each validator is backed by the node operator's own ETH bond. If there is ETH loss due to poor node performance, the bond covers the loss before rETH stakers are affected. If the bond doesn't cover all of it, the rest becomes a debt on the operator's megapool. Until the debt is repaid, the node can't add new validators or reduce its bond, and its rewards and any ETH returned to it go toward paying off the debt first. In the meantime, the shortfall is spread across the entire network through a reduction in the relative value of rETH, rather than one user taking large losses just due to bad luck that their deposit ended up on a bad node. Debt repayments go straight back to rETH. For example, if a node operator bonded 4 ETH and their validator leaves the network with 30 ETH, the network retains its 28 ETH and the operator retains 2 ETH - all loss is on the operator. If the validator leaves with 26 ETH, the network retains all 26 ETH, and the missing 2 ETH becomes a debt on the operator's megapool that is paid back from their future rewards. Legacy minipools still follow the old rules: losses are covered by the operator's 8 or 16 ETH bond first, then by slashing their legacy staked RPL (up to the amount they have staked). Node operators thus have a large incentive to perform well. ### What is a decentralised staking protocol exactly? Rocket Pool is a protocol that contains a decentralised network of node operators. Each node operator is a separate entity with their own server infrastructure. Having this heterogeneous network is important for: - _Fault tolerance_ — failures only affect a small number of nodes - _Scalability_ — by opening up the network it means a huge number of nodes can be brought online to meet demand - _Quadratic Leaking_ — this is a fancy term for how the Beacon Chain punishes validators for being offline. As a node operator, if you go offline with a big group of other validators your punishment is greater — this deters centralised staking services. ### How can I access my deposit and rewards? If you are a non-operator staker and just sending your deposit to Rocket Pools smart contracts, you will instantly receive rETH tokens which are a form of tokenised staking, they will still gain rewards over time, but you don’t need to hold them with us and can trade/sell or hold them as you wish. You can also trade them back to the protocol for ETH + rewards gained if there is liquidity available in the protocol to cover the exchange. ### Are your smart contracts audited and open source? In the interest of transparency, they are [open source](https://github.com/rocket-pool/rocketpool) for all to analyse. Additionally, before the smart contracts were deployed to mainnet they were fully audited by both Sigma Prime and ConsenSys Diligence, two of the best auditing teams around. --- ### Why would I run a Rocket Pool smart node vs going solo? As a node operator, you can take advantage of the following benefits: - You get to use our awesome [Smart Node Stack](https://github.com/rocket-pool/smartnode), a super handy setup to make staking very easy. [Get started here with the installer](https://github.com/rocket-pool/smartnode). - You need only 4 ETH per validator to stake (as opposed to 32 ETH solo), since Rocket Pool assigns 28 ETH of the protocol's deposits. You can also run many validators in the one megapool on your node. - You earn extra rewards through a commission on the rewards earned on your node by Rocket Pool users' ETH: a 5% base share, plus a share of a further 9% if you stake RPL ([details](#what-commissions-are-possible-when-staking-with-rocket-pool)). - You stake your own ETH, free from any commissions. - You can stake RPL on your node to earn a share of protocol revenue (the [voter share](/node-staking/megapools/staking-and-claiming-rewards#how-voter-share-is-distributed-to-megapool-rpl-stakers)) plus RPL rewards (optional; RPL is no longer required as collateral). - You are always in control of your own node. - You can come and go anytime from the network. ### What is the minimum staking amount for a node operator? Since the Saturn 1 upgrade, the minimum staking amount for a node operator is 4 ETH. Each validator pairs your 4 ETH bond with 28 ETH from the rETH staking pool to form a 32 ETH validator inside a megapool, which can hold many validators under one node. (Legacy 8 ETH and 16 ETH minipools can no longer be created - the minipool queue was closed ahead of Saturn 1 by [RPIP-74](https://rpips.rocketpool.net/RPIPs/RPIP-74).) RPL is no longer required as collateral to run a megapool validator, but staking RPL on your megapool earns you a proportional share of protocol ETH revenue (the [voter share](/node-staking/megapools/staking-and-claiming-rewards#how-voter-share-is-distributed-to-megapool-rpl-stakers)) plus RPL inflation rewards. See the [megapool guides](../node-staking/megapools/overview) for details. ### What is involved in running a Rocket Pool node? As a node operator you will need to run a server 24/7 performing proof of stake validator duties. Use our [Smart Node Stack](https://github.com/rocket-pool/smartnode) to manage your node + validators in the protocol, a super handy package to make staking very easy. [Get started here with the installer](https://github.com/rocket-pool/smartnode). Since the [Saturn 0 upgrade](/en/upgrades/saturn-0/whats-new), the Rocket Pool protocol no longer requires a minimum amount of RPL. Before [Saturn 0 upgrade](/en/upgrades/saturn-0/whats-new), a minimum of 10% of the value in RPL of the ETH provided by the protocol (10% of 24 or 16 ETH respectively, that is, 2.4 or 1.6 ETH) was required. ### How is the RPL token used? Check out [the tokens section](#what-tokens-does-rocket-pool-use) for a great overview! --- ### Integrated dApps, SaaS Business and more If you’re a dApp, you can integrate directly into Rocket Pools smart contracts to stake ETH that your dApp might hold. You’ll instantly receive rETH (a tokenised staking deposit) back when depositing which can be used as your dApp wishes. You now have staking in a decentralised dApp using a decentralised staking network, whoa! If you’re a SaaS (Staking as a Service) provider, you might want to maximise returns for your users. Spin up a few smart nodes in the Rocket Pool network and put that ETH to work earning staking rewards + extra commissions + RPL rewards. Are you a wallet or DEX and want to give your users the ability to stake their ETH but not leave your service? Just write a smart contract that can manage depositing ETH into Rocket Pool on your users' behalf and then receive rETH back instantly. Bam! Staking services delivered. There are many more possibilities. Rocket Pool is a permissionless smart contract based staking protocol, anyone can plug into it. Your users don’t even have to know you’re using us, that’s entirely up to you!