Hello Rally Community,
For those of you who don’t know me, my name is Miguel Vias. I am a cryptocurrency markets liquidity consultant appointed by the community on May 7th to help develop liquidity for $RLY. As part of this effort, on May 18 I submitted a proposal for 35 million $RLY to fund marketmaker and exchange partnerships. I am happy to report those funds have been successfully allocated to four market makers and a number of key exchange partnerships. $RLY is now listed on Coinbase, Coinlist, and Huobi, with more to come over the next few months.
As I had mentioned in the original proposal, all the market maker engagements have been in the form of loans with embedded options. This means that those funds, approximately 27 million $RLY, will be repaid to the Community either in the form of $RLY or USDC/USDT. The bulk of the remaining 8 million $RLY will be allocated to exchanges and will be used for educational programs. Those $RLY tokens will be used to inform their users about $RLY, as well as Rally, the flagship consumer app on the $RLY protocol, and to encourage them to participate in the project. By way of example, Coinbase recently launched a $RLY tutorial through its Earn program, funded through the previously approved educational program budget.
Over the last few weeks I have begun fielding requests from exchanges not only to list $RLY but also to engage in more substantive partnerships. There are numerous rewards programs which exchanges provide to their customers, and it is becoming increasingly likely the Community will have the opportunity to partner with these exchanges to activate those programs. To do so however, we will need to allocate additional budget to the liquidity initiative. There are two primary drivers of the increased budget request:
- Program Funding: Any exchange engagement around a rewards program will require $RLY funding which will have to come from the Community
- Market Maker Funding: With an increased number of listings our market makers will need more $RLY to provide liquidity on new exchanges
What is the ask?
To properly leverage these new opportunities, a high level request for the following 12 months is outlined below, consisting of up to a maximum total of an additional 30 million $RLY and 5 million USDC to be deployed as follows:
- Loans: $RLY deployed in the form of loans to enable key market making partners to provide consistent liquidity
- Amount of allocation: 60-70% of total budget
- Loans may contain embedded options to sell $RLY
- Loan terms to be no longer than 12 months
- Rewards programs: $RLY and USDC deployed to exchange-specific rewards programs to help drive awareness and engagement with Rally efforts
- Amount of allocation: 30-40% of total budget
- $RLY and USDC will be returned to community if not used
As was the case in the previous budget request, the maximum number of $RLY to be deployed is substantial but will not be the total amount actually spent. Most of the budget is composed of loans which will be repaid either in $RLY or USDC depending on the terms required by the relevant partners. As is currently the case with the existing budget, we should expect the actual $RLY spend to be between 5 million and 10 million $RLY. However, to enable the engagement with exchanges and market makers, this amount needs to be approved by the community as available for deployment should the need arise.
How do we track and govern all of this?
In an effort to not reinvent the wheel, I propose we follow my previous suggestion:
- Quarterly reports delivered to the community on September 30, December 31, March 31, and June 30
- Quarterly community calls to review the report and collect community feedback on progress, spend, and strategy.
As part of the role for which I was originally appointed, I will act as the community’s agent for purposes of identifying, vetting, and officially contracting with partners, as well as overseeing and managing relationships with partners selected.
I hope this is all clear, but if anyone has any questions or concerns, please feel free to post them in the forum, and I will do my best to answer them promptly.
Thank you, and I look forward to the discussion,