Discussion Focus
- Whether the community supports formally sunsetting rETH on April 13, 2026;
- Whether the community agrees with the overall arrangement that users may redeem through the existing process before the sunset, while redemption after the sunset will be handled through the redemption contract; and
- Whether there are further suggestions regarding the execution details after the redemption path is opened and the way follow-up notices should be communicated.
1. Discussion Objective
This discussion outlines the rationale, asset handling mechanism, and technical implementation path for the orderly sunset of rETH. The core objective is to complete the exit of rETH and the redemption of related user assets in an orderly manner while minimizing the impact on existing users as much as possible. At the same time, it is intended to further align StaFi’s focus with its current strategic priorities by allocating more resources toward AI- and LSaaS-related development.
2. Background
As StaFi’s strategy continues to evolve, the protocol is increasingly shifting its focus toward infrastructure with stronger long-term potential, particularly AI-related initiatives and LSaaS (Liquid Staking as a Service). In comparison, rETH, as an earlier product module, is no longer a priority at the current stage. Continuing to maintain this product would not only dilute development and operational resources, but also make it more difficult for the overall product architecture and resource allocation to converge around StaFi’s core strategy.
Against this backdrop, we suggest formally sunsetting rETH on April 13, 2026, and prioritizing limited resources toward areas that are more aligned with StaFi’s medium- to long-term development path. This adjustment will not only improve overall resource efficiency, but also help StaFi establish a clearer strategic focus around AI-related exploration, staking infrastructure, modular service capabilities, and broader long-term product evolution.
3. Handling of Staked ETH
For ETH currently staked through rETH, this discussion suggests adopting a unified exit and redemption mechanism to ensure that users can smoothly recover their assets while minimizing confusion and operational complexity during the sunset process.
The goals of this mechanism are to:
- provide a clear and straightforward redemption path;
- reduce operational complexity for users; and
- standardize the post-sunset asset handling process through a contract-based mechanism.
The proposed process is as follows:
- The protocol will initiate the unstaking process for the ETH currently underlying rETH;
- Once unstaking is completed, the related ETH will be transferred into a dedicated redemption contract;
- Once the redemption contract is live, users who currently hold rETH will be able to redeem through that contract in accordance with the contract rules; and
- By submitting their rETH, users will be able to claim the corresponding amount of redeemable ETH on a proportional basis.
It should be specifically noted that after the formal sunset of rETH, users who have not yet redeemed will still be able to redeem the corresponding ETH at any time through the redemption contract. However, from the moment of the sunset, no further rewards will accrue, and the exchange rate in the redemption contract will be fixed and will no longer update over time. In other words, any redemption after the sunset is only for withdrawing the asset entitlement fixed at the sunset point, rather than for claiming assets that continue to accrue rewards afterward.
4. Proposed Timeline
To allow sufficient preparation time for the community and affected users, and to ensure that the rETH sunset proceeds in an orderly manner, it is recommended that the process be carried out in several phases around the formal sunset date.
The proposed timeline is as follows:
- Before the rETH sunset: current users may still redeem their staked ETH through the existing process. Users are encouraged to review their positions and redemption plans as early as possible and decide whether to exit before the formal sunset date;
- Preparation phase: the team will complete frontend notices, redemption instructions, community communication, and related technical preparations, while also clarifying the next execution steps;
- Confirmed item: rETH will be formally sunset on April 13, 2026. At that point, the minting entry will be closed, the main frontend entry will be removed, all related apps, including the Validator App, will also be taken offline;
- Conditional item: the opening time of the redemption path will be announced separately based on the completion of the underlying unstaking process and the deployment progress of the redemption contract. Once those conditions are met, rETH holders will be able to redeem ETH through the redemption contract. It should also be noted that after the formal sunset of rETH, users who have not yet redeemed may still redeem at any time through the redemption contract, but no further rewards will accrue and the exchange rate will no longer continue to update.
The detailed execution schedule will be coordinated and announced by the StaFi team based on unstaking progress, redemption contract deployment status, and actual execution conditions, in order to ensure that the entire process proceeds smoothly.
5. Technical Implementation
From a technical perspective, the sunset of rETH mainly involves four parts: asset exit, redemption implementation, product sunset, and validator handling.
- First, the team will need to initiate the unstaking process for the ETH currently underlying rETH and confirm the completion timeline and withdrawable status according to the underlying mechanism. Once the funds become available, the ETH will be transferred into the designated redemption contract.
- Second, a dedicated redemption contract will need to be deployed to support ETH redemption for rETH holders according to the defined rules. The contract design should remain as simple, transparent, and verifiable as possible so that the community can easily understand the mechanism. If necessary, the design may also include a redemption period or a follow-up handling mechanism to preserve sufficient execution flexibility in special cases.
- At the product level, the minting entry for rETH will be closed, the main frontend entry will be removed, and all related apps, including the Validator App, will also be taken offline. At the same time, the team should communicate with the community in advance, continue reminding users who still hold rETH to follow the redemption process, and provide necessary notice regarding any potential delays or special circumstances.
- For validator users, it is recommended to complete exit before the sunset. If any validators have still not completed exit during the execution stage, the protocol will trigger a unified exit process so that all validators complete exit. If validator users need to claim afterward, it will also be handled through direct contract interaction and can be completed directly on Etherscan.
6. Conclusion
The sunset of rETH is an adjustment made in the interest of stronger strategic focus and more efficient resource allocation. By sunsetting a legacy product in an orderly manner and providing existing users with a clear and executable redemption path, StaFi will be able to direct more resources toward higher-value long-term areas such as AI and LSaaS.
The key point of this discussion is not simply to remove a product, but to create more room for StaFi’s next stage of core development through a clear and orderly product contraction, while making overall resource allocation more aligned with StaFi’s long-term strategic direction.