Community Treasury Fundraise Update… and Next Steps

Community Treasury Fundraise Update

On behalf of the Community Agent, we’re pleased to provide an update on the current status of the Community Treasury Fundraise.

As you recall, following the original community fundraise Discourse post, the approval occurred on 12/31/2020, with the final terms approved on 1/10/2021. The amendment to the final terms was approved on 1/16/2021.

As of today, the Community Agent has completed sales of $RLY on behalf of the Rally Community as follows:

  • Total $RLY sold: 185,040,538
  • Total USDC received: $26,636,355

Of the $RLY sold for the Community Treasury to date, over 97% are subject to a 24 month lock up as part of the Community Agent’s priority to balance stability of the Rally network.

In addition, the Community Fundraise has succeeded in bringing in individuals and crypto-enthusiasts interested in network building, governance, staking, and contributing to the long term success of the network as a whole. It has also enabled the introduction of Rally Network to new geographies, such as South Korea, Japan, Hong Kong and the United Kingdom. As a benefit of this fundraise was seen as its ability to further the participation in the Rally Network to those outside of the immediate community interested in its potential, these expansions, both internationally and to a new breadth of crypto-savvy participants, are definitely a win.

When the concept of a Community Treasury fundraise was first introduced, there was no way to know how it would turn out. But with these positive outcomes, the Rally community has achieved a game-changing development: the Rally Network is now holding robust funds that can enable the next level of growth and innovation. With this larger pool in the treasury, the community can begin planning ways to significantly scale the Rally Network and empower even more development and engagement.

As the Snapshot proposal to approve the adoption of a Community Treasury Management Policy has passed, the Community Treasury funds will be moved to the management of the duly appointed Treasury Manager in due course.

Next Steps

In the coming days, there will be more discussions initiated and, where appropriate, proposals to follow, to address ways that the community can apply the funds in the most productive ways possible to continue to strengthen and grow the Rally Network. This is an exciting time, and the larger Community Treasury enables the Rally community to commit to larger spends as needed to bring in the top advisors, developers and partners to assist with the next stages.

In addition, based on learnings from the crypto industry, discussions will be initiated on how to provide governance safeguards to ensure the security of the Community Treasury.

Also, in light of the new robust Community Treasury, certain network mechanisms like the YDVs, previously necessary in the nascent stages to build up the Community Treasury immediately following launch, will be addressed for discussion and modification. This is timely given the recent exploit in the YFI DAI vault.

In the meantime, updates will be provided with respect to any additional fundraise activities conducted by the Community Agent from the remaining ~300M $RLY authorized for sale through the Community Treasury fundraise.

1 Like

Thanks for the update IRA. A really big step for Rally!
3 questions:

  1. Is there a deadline for the remaining 300 million Rally to be sold? What part do they expect to be sold?
  2. I think the community treasury fundraise is really big as well for the whole crypto space. Especially as the amount raised is substantial. Can we make a big PR campaign around this fundraising event? (timing would be awesome now, as crypto is the talk of the month)
  3. To add extra fuel to the PR, can the names of the investors be disclosed now or at time of press release?
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Hi Ira, kind reminder, could you or someone of the team maybe answer my questions?

Hey @martinmartin, thanks for the thoughtful questions! Some responses:

There’s no specific deadline, but it’s likely to wrap up within the next few weeks. We understand from the Community Agent that there are several investors completing their onboarding processes, and once those are finalized, we’ll receive the update and then let the community know.

Thinking back on when this process started in December (seems like decades ago, doesn’t it? crypto moves at light speed)… 500M tokens were approved for the fundraise, and with the $RLY price at the time around $0.06, selling the entire amount (assuming this median price) would have raised ~$30M. With the heat in crypto, a lot has changed, and we’re near the target raise with only a portion of the allocated tokens sold. And, as the goal of the fundraise was not only to raise funds for the treasury, but also to diversify our community of crypto-enthusiasts with additional participants and broader geographical reach, the community has been able to accomplish these goals, so there’s no need to keep this fundraise open indefinitely.

Along these lines, there are a few possible opportunities coming up in the near term for the community to consider, that amount to strategic uses of the tokens that were allocated for the community fundraise but not sold. Stay tuned for more on that shortly.

Appreciate this feedback. This fundraise has indeed received strong, positive reactions, and the novel structure of having it conducted completely on behalf of a decentralized community to fund a community-managed treasury has been widely received as a thoughtful and innovative model - and a significant contribution in the discussion on how to achieve and empower true decentralization.

But, I’ll caution that news and sound bites of big raises sometimes result in the wrong response - even with the careful and compliant way that this one was conducted. And as a community, members have been very transparent about NOT wanting speculators or whales in our protocol - we don’t want to attract pump-and-dumps, we want folks who are dedicated to participating and strengthening the network. For this and other reasons, it’s likely not the type of PR the community should focus on. We are doing great things, so there’s plenty of PR that we can and do create, without focusing primarily on the size of the raise.

The Community Agent is leading this fundraise - and they’ve done so based on anonymity for themselves as well as for their investors. Accordingly, there’s no plan to disclose any investor names.

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Thanks for your answers Ira!

Здравствуйте, подскажите пожалуйста, сегодня окончание вашего аирдропа?

Извините, но раздачи или аирдропа токенов не будет.