Hi Rally Community,
The Rally team has been hard at work to support the next steps in the proposed community roadmap. One of the most important things on that roadmap is the distribution of rewards for driving real usage and activity of Creator Coins, Brand Coins, and any other social token on Rally.
The team is close to completing the blockchain infrastructure and rally.io website components needed to kick off the first aspect of what we’re calling the Community Activity Rewards.
Voting and Rollout Timeline
As a quick note, we are very eager to involve the community, and have them poke at the system, including looking for opportunities for improvement. If there is nothing major identified, we’d like to push this out as soon as we can, to help drive value to creator communities and encourage people to stay in Creators’ networks. While there may be some great suggestions on alternative systems or configuration changes, our current plan is to put this system, as designed, up for a vote on Sunday at 12pm PT. If this passes, we are targeting Thursday 11/12 for release.
If you are comfortable with the current plan and the proposed design, let’s continue the improvement or change discussions after the initial release. If you are NOT comfortable with it, you can absolutely vote NO on the proposal. As a community project, we will respect the wishes of the community, work towards making the appropriate system adjustments, and bring back the improved system for a new vote.
Community Activity Rewards will be calculated hourly, per Creator community and allocated proportional to each community based on their contribution to the overall net gain of $RLY backing all creator coins. When calculating hourly, the system will look back at each community’s 4 week hourly average $RLY, and compare it to the current hour’s $RLY, at the end of each hour.
Currently we are starting with proposing emitting 1,000 $RLY for each creator per day into a pool that gets distributed to only the active communities. Meaning at this point, we have 33 creators live, so there would be 33,000 $RLY per day, or 210,000 $RLY per week allocated to Community Activity Rewards. As a reference point, we’ve emitted roughly 350,000 $RLY tokens per day since our Oct 15 launch between YDV and Liquidity Mining rewards, so this would be a conservative setting at launch that the community can evolve.
As each incremental creator launches, we will add the appropriate 1,000 $RLY per day to the overall emission. After we reach 100 total creators, the 101st creator will add 900 $RLY per day to the total emission pool. This pattern will continue until we reach 1,000 creators, where the incrementally added emission is 100 $RLY, and the 1001st creator added will add 90 $RLY. This pattern will also continue until we reach a cumulative 1,000,000 $RLY per day when the network is at 10,000 creators. After that, we will no longer add $RLY to the Community Activity Rewards for each incremental Creator who launches.
When rewards are earned by a community, $RLY will be rewarded to the community and used to add additional backing to that community’s Creator Coins. As the number of $RLY backing that Creator Coin increases due to the rewards provided to that community, the Creator and their entire community of fans will benefit, as the value of the Creator Coin as a whole will increase. All Creator Coin holders will need to wait until the weekly distribution to participate in the rewards. Any user that exits from the Creators’ economy will forfeit their proportion of the Community Activity Rewards.
For the calculation, we decided to look back 4 weeks to protect against any significant spikes or dips in a creator economy. For example, If a creator has a large spike in a 1 week period, but some declines for the following couple of weeks, using a 4 week average as compared to a lifetime average will make it easier for them to get back to reward eligibility.
In addition, the calculation specifically will take the incremental amount of $RLY per community, and then take the square root of that $RLY. This is intended to skew the rewards slightly in favor of smaller communities. Larger communities who have the capability to generate lots of creator coin purchases, conversions and activities should still receive very sizable rewards.
In order to help users understand where their community’s rewards stand, we are planning to calculate the rewards and display them on the creator’s coin page on rally.io each hour. The displayed rewards are at that point owned by that community and won’t go down during that week.
The actual distribution of the rewards will happen weekly. After the $RLY is added to the community, the $Creator Coin to RLY exchange rate of each reward earning community will change accordingly, and the $RLY rewards will reset.
I am sure there will be lots of good questions and comments, so let us know what you think.