Rocket Pool GMC Treasury Considers USDC Diversification to Stabilize $RPL Value

Rocket Pool GMC Treasury Considers USDC Diversification to Stabilize $RPL Value

Time Stamp: August 28, 2023 11:00 AM
Source Node: 2850337

In a strategic move to diversify its assets and encourage broader external participation, the Grants and Bounties Management Committee (GMC) of Rocket Pool ($RPL) has proposed the integration of USDC into its financial framework. The proposal, detailed on the Rocketpool DAO forum, underscores the potential benefits of including USDC payments, aiming to attract a more varied applicant pool.

Starting from September, the GMC has outlined plans to convert 20% of its monthly inflow payments into USDC. This decision is influenced by the current RPL price, which stands at a comparatively low $25. With the GMC receiving an estimated 3275 RPL monthly, this translates to a value of $81,875. From this, a sum of $16,375, or 20%, is earmarked for conversion to USDC.

The move to diversify into USDC is not without its challenges. “Statistics regarding the number of applicants preferring USD over RPL were hard to ascertain,” the proposal stated, emphasizing the complexity of determining the optimal allocation strategy.

A notable contribution to the discussion came from a user named @Dondochaka, who suggested a system where “all applications specify payment amounts in USD value.” This approach would allow recipients to select their preferred payment denomination, be it in USD or RPL. Furthermore, for bounties, the recommendation is to denominate payments in USD until an applicant claims completion.

The overarching objective behind these proposed changes is clear: to mitigate the impact of RPL price fluctuations on the GMC. By efficiently locking in exchange rates and diversifying assets, the GMC aims to establish a more stable and transparent financial framework.

Image source: Shutterstock

Time Stamp:

More from Blockchain News