The SEC filings today, filled with factual errors and misleading statements, show concretely that the agency's incompetence is endangering investors.

The most decentralized dApp on Ethereum is Rocket Pool - it has more home stakers than Solana, Gnosis, Polygon, Avax, everything but Ethereum itself.

In a sea of charlatans, Rocket Pool has pioneered true decentralization.

In this post, I will first explain why I believe $rETH is NOT a security by analyzing all of Howey, Reves, and the FIT21 criteria. Next, I will explain several factual errors that the SEC has made in its lawsuit against @Consensys with evidence. After this I will say why Consensys will likely win on summary judgment by analysing the Coinbase victory.

Finally, I will explain how, just like tornado cash, Rocket Pool is unstoppable. Neither the Rocket Pool DAO, nor Rocket Pool LTD., nor the SEC, nor any US or international court has the power to stop people from running nodes at home or holding $rETH in their wallet.

Permisionless. Decentralized. Censorship resistant.

By the end of this thread, I hope you walk away with the knowledge that the SEC is hollow, Ethereum is the future, and Rocket Pool is enabling it.

If you prefer a single long article, check it out -

1/16mirror.xyz/jasperthefrien… Let's start with the elephant in the room. The SEC has alleged in its complaint against @Consensys that the $rETH token is an unregistered security.

Before diving into why I think the lawsuit will be dismissed before it ever gets evaluated on its merits, I want to defend the tougher position and establish why $rETH ought not to be a security. This analysis will be broken into 3 sections: an analysis through the Howey test and each prong, an analysis through the Reves test and its prongs, then finally an analysis through the yet hypothetical FIT21 for good measure.

I will be using @TeamPOSA's analysis for the below section and will link to their full report. I highly recommend reading it.

Disclaimer: I'm a full-time medical student. I am not a lawyer and I have never studied law. The people who wrote the report are, and you should read the real report. This is just my interpretation of their arguments.

2/16

Fully diluted value is not a meme.

Let’s look at some tokens that recently had large unlocks.

$STRK MCAP almost back to launch values despite half the token value.

On $AEVO, MCAP is near ATH and token price ATLs.

Almost 2x launch MCAP but 1/3 the token price.

Short thread on the most important aspect of the FIT 21 bill - the five prong decentralization test to determine whether or not an asset is a digital commodity.

Expect all protocols with goals of decentralizing to be paying very close attention to this test.

Bill text below 👇 Prong 1 - Power Rule

Prong 1 has two subdivisions concerning the previous 12 month period.

(I) - no person* can change the code

*more on what a person is at the end of the thread

The greatest partnership in restaking is about to be born.

Rocket Pool x @Eigenlayer

The biggest union of node operators and the biggest marketplace for security, united...with no added risk to $rETH.

My essay on why this is THE endgame explained.


1/31mirror.xyz/jasperthefrien… I will describe how Eigenlayer can be used without adding existential risk to a protocol. I suggest a unique collaboration between Rocket Pool and @Eigenlayer

The RP GMC has approved a $60,000 bounty for the completion of the RP x @Eigenlayer integration, pending pDAO vote.
2/31

Once upon a time, I wrote about the @Rocket_Pool layer zero bull case.

Rocket Pool has a bonafide army of node operators with huge capital at stake - the perfect partner to turn @eigenlayer into a decentralized powerhouse.

Time to bring yield to decentralization, a thread 👇 With over 3,000 node operators and no foundation-based delegation, @Rocket_Pool is a more decentralized protocol than almost any L1.

All this decentralized trust plus >$2 billion in locked economic security.

Technical, capitalized, aligned.

All that's missing is a marketplace.

Did you know that a @Rocket_Pool tokenomics overhaul is currently being voted on?

There are 4(!!) major votes to be decided.

13% $RPL APR??

Inflation allocation, grants committee membership, reward AND collateral system - all being voted on.

Let's dive in.
⚖️ @Rocket_Pool #1 RPL Staking Rework - RPIP-30

This is a behemoth, the product of many in the community iterating for months before the proposal being voted on now.

At a high level, this vote changes $RPL rewards from a linear scale to one that more directly rewards creating rETH supply

The Year of @Rocket_Pool

Two Major Upgrades

🏛️Houston🏭 + 🚀Saturn 🪐

-complete architecture redesign
-10x scalability increase
-on chain governance
-birth of RP L2s
-LEB8 --> bonding curve, as low as 1.x ETH

@Rocket_Pool roadmap for making permissionlessness scale

1/30 @Rocket_Pool The @Rocket_Pool roadmap has two focuses, roughly analogous to the Ethereum scaling roadmap to

-scale L1 data throughput within the economically enforced gas limit

-enhance this with rollups that abstract economic burdens for end users while maintaining the L1 security

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