Tl;dr: A proposal will lay out plans to approve a community sale of $RLY with proceeds to fund the Community Treasury.
I’d like to start a discussion about the long term vision of the Rally Network and how to get there. The plan is to design and execute a staged and gradual decentralization of the network, with the ultimate goal to achieve full decentralization, where the entirety of the Rally Network will be developed, operated and managed by the decentralized, empowered community. It’s a lofty goal, and one that many protocols have spent years trying to achieve. Rally is on the right track.
Where are we now?
When $RLY launched on Ethereum on October 15, governance tools and oversight were put in place to ensure that the network would be managed by the decentralized community. The network launched with Discord to enable the community to meet each other, interact and share ideas. This Discourse channel gives the community a way to introduce and dive deeper into issues and possible updates and changes. And, for those users holding $RLY through emissions and rewards, Snapshot provides a governance interface to seamlessly make proposals, review other community member proposals, and vote on them.
The Rally Genesis Team, comprised of members of the community and the original project team, acts in a ministerial and technical capacity, making proposals for review and discussion by the community, and executing on the decisions of the community.
It has always been the intent to have the community envision and execute on the potential of the Rally Network, and from the beginning, we’ve handed off the reins to the community to do so. There’s really no better team than the Rally community to steer Rally into the future.
What’s unique about Rally is that the network is not only the decentralized mainnet protocol and governance functions, but also the private sidechain, Rally.io. On Rally.io, the project team maintains an active role in working with creators, including getting their creator coin launched. While Rally.io is still some cycles away from decentralizing, the intention is that Rally.io becomes part of the toolkit for creators, but no longer the project of a centralized company.
There are a lot of considerations on how to proceed with decentralization, and as we move forward, we’ll be doing so with transparency to the community, including through blog posts, Discord and here on Discourse.
As a starting point, we believe that the empowerment of the community goes beyond enabling the community to decide on and take action. Especially in these early stages, it’s also key to arm the community with the funds to execute on decisions that it makes.
How do we get there?
The Community Treasury was designed to power the development and realize the potential of the Rally Network. While the yield accumulated through the YDVs has been sufficient to fund the Community Treasury since launch until now, a larger pool in the treasury will enable the community to significantly scale the Rally Network and empower the community to effectuate even more development and engagement, including, for example, engaging developers to build the never-been-done-before ideas that the community comes up with.
The sky is the limit - and a bigger war chest can help to make it happen. With the imperative in the crypto space to move quickly, these funds will enable the Rally Network to meet the moment.
Proposal to Increase the Community Treasury
Traditionally, most projects have raised funds prior to token launch to fund the development efforts of their companies. Some projects (Maker, Balancer) have raised funds post-launch on behalf of the protocol or foundation, but still following the structure of working with established venture capital firms or institutional investors, in transactions including term sheets, long legal agreements, and a slew of attorneys negotiating the deals. The process can be expensive and time-consuming.
While there’s obviously value in tapping into the funds available by traditional financing routes, we in the Rally community are uniquely situated to consider a different path. The Rally community is a decentralized network, and therefore not subject to the same constraints and legal concerns that would apply to a company raising money for its own purposes.
What we envision is the following: conducting a community-approved sale of $RLY tokens, where the proceeds of such sale would be directed to the Community Treasury that is in itself governed by the community.
The structure of this token sale is designed to maximize control by, and direct benefits to, the Rally community: only the community can approve and effectuate it, and the community will have full control over the proceeds generated by it. Unlike a traditional financing that benefits a single party or entity, this $RLY fundraise will benefit the entire decentralized Rally community and empower the community to do more.
We’ve been talking to folks in the community and the industry about this design, and the response has been universally positive. The proposal will include the following:
Approve the release of $RLY from the Community allocation to be sold in a token sale, the proceeds would be directed in its entirety to the Community Treasury. Open to discussion on how much should be allocated, and what percentage of the total Community allocation this will represent.
Authorize the Rally Genesis Team to select a third party to execute the sale and token delivery process. This authorization will include appointment of the Rally Genesis Team to work with the selected party to determine appropriate terms and restrictions for the $RLY sold (e.g. lock-ups, staggered vesting or other terms that may be deemed in the best interests of the network) and reasonable fees to compensate such party.
Thoughts? Feedback? Looking forward to having a discussion.