Discussion on engaging strategic creators and partners

Community Treasury
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Hey Community -

I’m posting this thread to kick off a conversation about an additional strategic growth lever for the Rally network.

For those of you who have been following the growth of the Rally network since its launch on October 15, 2020, it’s been an incredible ride, and the best is still yet to come. Social tokens are considered by many to be the monetization building block of the future, and the Rally network is at the forefront of building the new economic system where artists, musicians, athletes, streamers and content creators of all kinds can build their communities, develop innovative content and fan engagements, and design and control their own economies.

Based on the initial success so far, the Rally network is achieving the type of name recognition that’s attracted, and continues to attract, marquee talent, celebrities, and strategic partners. These folks are looking to get involved in a very meaningful way and specifically are looking to lean in to Rally by holding a stake in $RLY tokens. There are currently a number of discussions with strategic talent and their representatives where they are not only interested in launching creator coins but they are also interested in purchasing additional $RLY tokens so that their interests are aligned with the overall Rally network. Allowing these parties to purchase $RLY tokens from the community could enable them to achieve this goal.

The recent finalization of the community treasury fundraises, both through the raise led by the Community Agent and the distribution and sale recently completed by CoinList, were widely regarded as very successful, with success measured by both the increase in the treasury as well as the growth in breadth and depth of $RLY holders following the events. The fundraises enabled a decentralized community to utilize an authorized third party agent to manage and oversee all aspects of the sale of a portion of the community’s allocation of tokens, with all proceeds flowing directly to the community’s treasury. The Rally community can now fund its future development as well as engage and benefit from the input of the wider and more diverse audience.

This post looks to explore following the same $RLY distribution design here, in the effort to attract and build long-term alignment with key creators and strategic partners. As settlements from the community treasury fundraises are wrapping up, there remains a balance of $RLY from the original 500M approved by the community. Using these $RLY to incentivize key creators and strategic partners to become part of the Rally network would go towards the achievement of aligning their long-term interests with the overall growth of the Rally network. In addition, launching their own Creator Coin could result in dramatic new growth to the network, both with increased participants and broad visibility to Rally.

Here are some thoughts on how this distribution would work:

  • As with the community treasury fundraise led by the Community Agent, discretion would be provided to the Community Agent to negotiate a price, in this case in exchange for a minimum 2 year lock up. The Community Agent again would play the role of managing the sale and token delivery process on behalf of the Rally community.
  • To ensure accountability and transparency, Bremner Morris, appointed by the community for go-to-market success, would serve as the community representative to assist with management and negotiation of each strategic opportunity.
  • In addition, a governance reporting process would be implemented by which each creator/strategic partner purchasing $RLY through this structure will be announced on a quarterly basis via Discourse to demonstrate the level of talent entering the Rally network as a result of this initiative.

Please join the conversation and provide your thoughts and comments.

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Wonderful initiative Ira - this is the perfect use of the remaining tokens already earmarked for sale, and having another negotiating tool will do absolute wonders for our Tier 1A conversations.

It’s a major Win/Win to get targeted and strategic money in as a first step in acquiring highly sought after talent.

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This seems like a wise idea. However, given that I do not know exactly how much is left, might it not be wiser to authorize a subset of the full remaining amount and see how that turns out first? For instance, authorizing a third, wait a month, and then consider whether or not to authorize another third? I think it is likely that it will work out, but it could be the case that it ends up not being as beneficial as hoped, and after 1/3 we decide to pursue a different strategy with the remainder.

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I agree. I think this is a great idea! The more we grow the platform the easier it is for our following to support our coin!

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Rally team, you keep surprising me :slight_smile: Great initiative, alligning long term interest with strategic partners!
You say each quarter creators/strategic partners purchasing RLY will be anounced. I think that transparency is also great. Can the investors of the last community treasure fundraise also be disclosed?
I think it is good to know who invested in our community.

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Great thinking here and certainly no better time to capitalize on Rally’s potential in the social token space. I’m all for this proposal.

@mrq02 I think the balance is roughly 300M https://wiki.rally.io/rally-io/rally-network/token-supply
(update: I realize this figure could be off since I’m not sure if the 40MM coinlist RLY came out of the 500MM allocation. I’m sure someone from Rally can update us!)

The Community Agent did a stellar job through the first round and earned their compensation. Will the agent seek the same fee and terms for this round?

Also, was the Agent already compensated for services rendered, and if so can you provide the community the total $RLY and date of disbursement or expiration of lock-up?

I was a bit confused by the approved language of the proposal since it indicates that the agent is to be paid in $RLY with 90 day lockup, but also paid through proceeds earned.

Thanks, @ira!

From approved proposal: “Fee: A fee of 3.5% of the total amount raised from this community fundraise will be paid to the Community Agent for services rendered, payable in $RLY and subject to a 90 day lock up, and paid through the proceeds earned through the community fundraise.”

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Great idea Ira. Sounds like a no brainer to me.

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Hey @martinmartin! On the community treasury fundraise, those sales are subject to the agreements entered between the participating parties and the community agent. Likewise with CoinList. The transactions were entered into subject to confidentiality. This new initiative is entered into for the primary purpose of bringing in talent and creators who will be informed that their engagement will be publicized, so the transparency is possible. Appreciate your support of this initiative!

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@mrq02 Appreciate your feedback. Before this proposal is posted on Snapshot, we will have, and will publicize, the final number of what $RLY is left and can be allocated to this initiative, so the community can assess. For context, the 500M $RLY initially approved for community treasury building, network reach, and community diversity purposes has gone so much further than anticipated in December when it was allocated - in no small part because crypto markets have been incredibly active, and also because Rally’s social token mission is resonating. The surplus of that initial approved amount enables an initiative like this one. The $RLY will generally be deployed because of interest from the potential partner - it will definitely help to be able to react quickly, with preallocated $RLY/transaction terms, to bring in the folks whose strategic involvement in Creator Coin and Rally could drive the network to a higher level.

Marquee names across industries are looking to launch crypto economies to build engagement and create digital fan clubs and novel use cases. These partners can increase Creator Coin engagement and fan community uses by an order of magnitude. Agree that a measured approach for new initiatives can be advisable - and note that the community can always pull back, or reallocate $RLY (as has been done already through CoinList, for example) if there are deemed better uses than this initiative following assessment. We are all looking for the longterm vision - glad to hear your support for giving this a shot.

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Hey @Grand! Thanks as always for contributing to the discussion.

Will present a final number shortly, something south of that as CoinList $RLY was from the same allocation, and a few other treasury fundraise participants were accepted by the community agent (due to the surplus of approved $RLY still available).

Terms to be finalized with the agent, but same fee and terms makes the most sense.

Yes, will be providing this transparency to the community.

The fees were paid in locked up $RLY, sourced from the community treasury (where the fundraise proceeds were deposited). Hope that clarifies but let me know if you need further info.

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