Added dev funding RPIP

RPIPs/rpip-increase-protocol-dev-funding.md

@@ -0,0 +1,95 @@
+---
+rpip: TBD
+title: Increase Protocol Development Funding
+description: Amends RPIP-37 to fund protocol development from 95% of the pDAO Reserve Treasury allocation.
+author: Darren Langley (@langers)
+discussions-to: https://dao.rocketpool.net/t/protocol-development-funding/4029
+status: Draft
+type: Meta
+created: 2026-09-03
+requires: RPIP-10, RPIP-37, RPIP-81
+vote-to:
+vote-date:
+vote-result:
+tags: [protocol-development-funding, pdao-reserve]
+---
+
+## Abstract
+
+[RPIP-37](RPIP-37.md) sets protocol development funding at "5% of RPL inflation", drawn as a yearly lump sum from the pDAO reserve. Since the introduction of [RPIP-81](RPIP-81.md), that 5% of inflation is approximately 35% of the annual pDAO Reserve Treasury allocation, or roughly 55,000–57,000 RPL per year (the most recent annual disbursement, in October 2025, was 54,683 RPL — see [RPIP-10](RPIP-10.md) `Direct expenses`).
+
+This RPIP amends the Funding section of RPIP-37 so that protocol development funding is instead set to **95% of the pDAO Reserve Treasury allocation** ([RPIP-10](RPIP-10.md)), approximately 150,000 RPL per year. The annual pDAO budget vote, the lump-sum disbursement mechanism, and all other provisions of RPIP-37 are unchanged.
+
+> All USD figures in this RPIP are indicative only, quoted at an RPL price of ~$1.73 (7 September 2026).
+
+## Motivation
+
+The macro environment has been tough on token valuations. In prior years protocol funding covered the core team's operating costs comfortably, but that has not been the case since mid-2024. The team has been drawing on ICO funds (the "dev wallet") to bridge the shortfall, which shortens runway.
+
+The core team runs a lean operation and reviews operating expenditure closely, but current operating costs run between roughly $1.1M and $1.5M per year (the variation is largely audit-driven), while RPIP-37 funding currently delivers in the order of $95,000 per year (~56,000 RPL). The magnitude of the shortfall is stark.
+
+Income from protocol-owned assets is expected to provide a meaningful supplement over time, but that is not yet available at scale. Protocol funding remains the core team's primary income source for the foreseeable future.
+
+Reducing the team's burn rate at this point in the cycle preserves the ability to keep delivering at a critical moment for the protocol and to be well positioned when conditions improve and adoption accelerates. Retaining talent through the downturns, not only the upturns, has been a consistent priority.
+
+## Specification
+
+The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT", "SHOULD", "SHOULD NOT", "RECOMMENDED", "MAY", and "OPTIONAL" in this document are to be interpreted as described in RFC 2119.
+
+The **Funding** section of [RPIP-37](RPIP-37.md) SHALL be replaced in its entirety with the following:
+
+> ### Funding
+>
+> - Each year, the pDAO MUST vote to agree a protocol development funding budget.
+> - On a successful vote, the pDAO MUST pay a lump-sum payment from the pDAO reserve to cover protocol development costs for the upcoming year.
+> - Protocol development funding is set to **95%** of the pDAO Reserve Treasury allocation, as defined in [RPIP-10](https://rpips.rocketpool.net/RPIPs/RPIP-10).
+> - The pDAO MAY vote to update this RPIP and change the percentage as protocol and market conditions evolve.
+
+No other section of RPIP-37 is modified by this RPIP.
+
+The RPL amount for the upcoming year's lump sum SHALL be calculated as 95% of the RPL allocated to the Reserve Treasury category over the funding period, using the inflation allocation and pDAO internal split in effect at the time of the vote ([RPIP-81](RPIP-81.md), recorded in [RPIP-10](RPIP-10.md)'s `Historical budget splits`).
+
+## Rationale
+
+### Why express funding as a share of the Reserve Treasury
+
+RPIP-37 already draws protocol development funding from the pDAO reserve as a direct Reserve Treasury expense. Expressing the funding level as a share of the Reserve Treasury allocation, rather than as a share of total RPL inflation, keeps the parameter aligned with the pool the money actually comes from.
+
+### Why 95%
+
+95% closes part of the gap between current RPIP-37 funding (~56,000 RPL, in the order of $95,000/year) and the core team's operating costs ($1.1M–$1.5M/year), taking the annual draw to roughly 150,000 RPL (in the order of $260,000/year at ~$1.73/RPL), while leaving a 5% residual in the Reserve Treasury for other direct pDAO reserve expenses. It is deliberately framed as a level that should be re-evaluated as market conditions improve rather than a permanent entitlement.
+
+### What is not changed
+
+- The annual pDAO budget vote in RPIP-37 is retained; this RPIP changes the default amount that vote ratifies, not the requirement to vote.
+- The Prioritisation, Roadmap, Governance, and Process sections of RPIP-37 are unchanged.
+
+## Backwards Compatibility
+
+Prior lump-sum disbursements (recorded in [RPIP-10](RPIP-10.md)'s `Direct expenses`) are unaffected. The new percentage applies from the next funding period.
+
+## Test Cases
+
+Not applicable; this is a Meta RPIP that does not introduce protocol changes.
+
+## Reference Implementation
+
+The change is realised by:
+
+1. Merging the amended Funding section into [RPIP-37](RPIP-37.md).
+2. The pDAO's next annual protocol development funding vote ratifying a lump sum equal to 95% of the Reserve Treasury allocation for the period.
+3. The on-chain pDAO proposal that pays that lump sum from the reserve, per [RPIP-10](RPIP-10.md), with the expense recorded in RPIP-10's `Direct expenses` table.
+
+## Security Considerations
+
+No security considerations.
+
+## Governance Considerations
+
+This RPIP amends a Meta RPIP and follows the standard RPIP process: forum discussion, editor review, and a pDAO snapshot vote under the usual quorum and majority rules.
+
+This RPIP does not itself approve any specific disbursement; each year's lump sum is still ratified by the RPIP-37 budget vote and paid via an on-chain pDAO proposal.
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).