On May 16th of 2021, the Rally Community approved a proposal to create a new linear token bonding curve to complement the sigmoidal curve. The newly proposed (or “expanded”) curve, had updated token supply, slope, and vesting requirements for creator genesis coins. To date, the Rally team has launched five coins on the expanded curve on an experimental basis to get data on the curve’s performance, as well as creator and user feedback.
We are still in the experimental phase of testing the expanded curve, but after seeing the performance of the four coins launched on it over the last few weeks, we believe an update is necessary to the creator genesis coin vesting requirements. We believe the current vesting schedule is too restrictive and does not give the creator a large enough % ownership in their economy, flexibility with free token distribution or stake in potential community activity rewards.
We would like to propose the below update to the creator genesis coin vesting schedule. If approved, this would apply to new creators launched on the expanded curve as well as retroactively to existing creators already on it.
Would love any and all comments, questions, or thoughts!
Previously Approved Vesting Schedule:
50k creator coins unlock immediately
10% of supply unlocks after a 6 month cliff
Additional 3% of supply unlocks each month through the end of year 3
All coins unlocked in the genesis supply will be subject to flow controls
Vesting will also be capped so a creator won’t vest more than 50% of the total circulating supply at any point (i.e. in order to unlock all 5MM coins in the genesis supply, you must garner enough support for 10MM+ coins in circulation)
New Proposed Updated Vesting Schedule:
50k creator coins unlock immediately
Additional 3% of supply unlocks each month through end of year 3
Vesting begins immediately, no 6 month cliff
All coins unlocked in the genesis supply will be subject to flow controls
Vesting will also be capped so a creator won’t vest more than 30% of the total circulating supply at any point (i.e. in order to unlock all 5MM coins in the genesis supply, you must garner enough support for 16.7MM+ coins in circulation.
It sounds like they do in regards to that but it is hard to understand. It sounds like currently, 50K unlock immediately and they have to wait 6 months before any more do. In the new system they get 3% per month right after the 50K unlock immediately. The one thing I do not see is the addressing of the rewards, and how they accrue them now, and what the future is…
Is there cause for concern that in order for a creator to have their entire supply vest they would essentially give up majority ownership of their coin?
to clarify… What I mean is that for the creator to fully recognize the vesting schedule, they would have to own < one third of their coins. This could severely limit any voting power in their ecosystem as well as lead them vulnerable to bad actors with large shares.
Good question. First, this is very similar to the the current TBC design, where creators start with 50,000 tokens out of 210,000 possible.
Second, while this isn’t exactly comparably, the OGs in blockchain economics are worth studying. Satoshi Nakamoto owns 5% of BTC. Vitalik even less of ETH. The thinking here is that if a creator owned more than 50%, it wouldn’t be a community-based economy; it’d look and function more like equity. At the same time, the creator is in a very different position of catalyzing their community so more than 5% is certainly warranted. I think the percentages outlined here still enables a creator to have the biggest voice in their token community, but they’d still need some fans to side with them in governance, which I think is a healthy dynamic.
I haven’t seen any creators complain yet about their ownership % of their economy, but maybe I’m overlooking something.
