We’ve designed an update to the Rally Rewards program in conversation with our community over the past months and after extensive internal modeling. In the upcoming months, the Rally Rewards program will be evolving how communities become eligible and can earn rewards.
The first portion of changes that will be rolling out next week and the changes are detailed below.
Rally Rewards will be moving to be a daily reward system rather than a weekly reward system. We believe that encouraging more frequent login will lead to better behaviors that will be beneficial to their entire platform.
Users will now need to login to their account to claim their rewards. Per the change to daily rewards, we believe incentivizing more active participation with accounts will lead to better engagement and higher coin ownership. However, there is no expiration to the claim; a user can go on vacation and not check their account and come up and claim any rewards that have accrued during their absence.
Claims will be retrievable via a single claim button for all rewards the user has accumulated to maximize simplicity. We will also ensure there will be a clear UI to show how much of a user’s reward is due to their different Coin communities.
Reward Eligibility Calculation
This is an evolution of the current reward system calculation that incentivizes Coins to lock up $RLY inside of their Token Bonding Curves.
The current reward calculation determines a Coin’s eligibility by looking at the 4-week moving average for $RLY backing against the current $RLY backing. If the Coin’s current $RLY backing number is greater than the 4-week average, the Coin accrues rewards during each hour that this remains true.
Overall, our aim with the changes to the Reward program was to address a couple of different pieces of feedback we have received from the community regarding this current rewards system:
- Rewards could be biased towards new Coins: Coins in the early stages of their growth would consistently exceed their moving averages. However, Coins with highly volatile trading profiles could also see large fluctuations when comparing against moving averages with less than 4 weeks of data.
- Rewards required a high degree of active management: Creators could spend a tremendous amount of their time managing the average $RLY backing of their Coin economies and often held substantial amounts of $RLY in order to intervene to stabilize their Coins “in rewards.” This does not represent a productive use of Creator time or resources relative to outright growing their Coin communities.
- It was not rewarding Creators or Communities that were growing their Coin economies slowly but stably: Because the current rewards system only looks at the difference over a moving average, Coins that had seen spikes in growth were being rewarded but Coin that were slowly but steadily growing could be overlooked in the current rewards calculation.
HOW TO EARN REWARDS WITH THE NEW CALCULATION MODEL
Step 1: Coin Economy Reward Calculation
All Coins (see note below) will earn rewards, and the amount of rewards per Coin will be calculated based on the sum of the square root of each holder wallet’s $RLY backing divided by the total of that sum for all Coins.
Numerator: For a coin, sum the sqrt of each holder’s $RLY backing.
Denominator: Sum of the results of the above calculation for all Coins.
Output = a Coin’s share of daily $RLY rewards
By changing the calculation from the four-week moving average of $RLY backing to the above formula, this enables more Coin economies to receive rewards on a consistent basis and benefits Coins who have wide participation from their community.
For example, if $A Coin has 4 holders that all have 4 coins each, square root the holdings in each wallet totals 8 (2 + 2 + 2 + 2).
If $B Coin has 1 holder with 64 coins, the square root of that is also 8.
$A and $B Coins would split the rewards for that day 50-50. So if the total $RLY reward for that day is 100 $RLY, each Coin would receive 50 $RLY in rewards.
Step 2: Individual Wallet Calculation
After that initial determination of total reward amount for a given Coin, individual rewards will be assigned based on the percentage of average Coin holdings. This is unchanged from the current system.
For example, if $X Coin has earned 100 $RLY for that day and you own on average 20% of the total circulating supply of $X Coin, you would receive 20 $RLY for that day.
We believe that this new calculation of Community Value achieves on the following:
- Rewards should be going to both new and existing Coin communities
- By evolving the current $RLY backing calculation, we are minimizing the initial potential impacts of changing the rewards program while improving the incentives of that program.
- $RLY backing is a consistent metric that allows more direct comparisons in Coin economies that are on different token bonding curves.
- By square rooting the $RLY backing amount per Coin holder, we flatten the overall values across Coin economies in order to mitigate a winner-take-all effect while incentivizing Coins to encourage wide ownership.
*Coins can be deemed ineligible based on repeated ToS violations and/or by failing to meet the minimum activity metrics (read more here)). There are also other Coins such as $R Coin that have been non-rewards Coins from launch and their non-reward status is posted prominently in the Coin benefits section.