Based on the discussion originally kicked off by @Masongos regarding the balance of circulating RLY supply between team/investors and the community, we are happy to report that we’ve obtained commitments from a majority of investors and early employees who are committing to lock-up their RLY tokens for an additional 6 months due to everyone’s commitment to the long term growth of the RLY network. During this period it is imperative that we explore other ways to productively grow the community and unlock additional RLY network holders faster.
Today we’re proposing a network growth program, to be approved and administered by the Association, that we’re calling the “RLY Network Growth Challenge”. We think that this program represents a straightforward way to grow the RLY community quickly and efficiently. The pilot program consists of a 100 day user growth challenge where Rally.io, Unite, SuperLayer, and other approved 3rd parties building on RLY, can work with the Association to distribute a max pool of 100M RLY through programs designed to rapidly acquire new users with a reach goal of 1M new users, from November 29th until March 9th, 2022. Unused tokens would expire and revert to the Association.
Parameters for funds:
- Maximum of 100 RLY spent for acquiring each verified user.
- All funds from the challenge must be pushed down to individual users and not used for app level programs or ad campaigns - these would be funded by existing operating budgets.
- The 100 RLY can be split across the acquired user and other user archetypes involved with bringing them on board (e.g., referrer, creator, affiliate, etc.).
- At least 50% (ideally more) of the distributed RLY has to be locked in and redeemed through the application itself (vs. distributed to main-net wallets).
- Apps have autonomy to design growth programs according to their needs and target the appropriate users for their apps.
- Tooling to facilitate programs (e.g., referral systems, KYC systems) can be built in house or brought in through third party providers.
- Apps to review initial designs with RLY Network Association to confirm compatibility and agree on distribution mechanics.
- Apps should self report growth data publicly along with instructions on how the RLY Network Association can verify these data. Upon data verification, the RLY Network Association should transfer RLY earned through these growth programs to applications for subsequent distribution to the appropriate users
- Dates of challenge: November 29th 2021 - March 9th 2022.
What qualifies as a verified user?
- The network will not be conducting user verification at this stage, but will work with the apps to find users that bring long term value and put in appropriate controls to prevent sybil attacks.
- Ideally, apps should reward increasing RLY for higher levels of verification. The following levels of KYC are recommended:
- Bronze (minimum): Social media verification or similar
- Silver (ideal): Phone verification
- Gold: Basic KYC with ID + Address
What happens if a user signs up for multiple RLY ecosystem apps?
- As there’s no central user verification, this case is allowed in the current challenge.
What does the ‘locked in RLY’ condition entail?
- If all distributed RLY left the apps and was converted to other assets it would not be beneficial to the network ecosystem.
- Therefore programs should be designed to keep at least 50% of RLY within the app ecosystem.
- The RLY Network Association can advise on whether appropriate controls are in place during the initial design review.
What are examples of growth programs that can be used?
- Invite systems: “Sign up for app and get 100 RLY”
- Referral rewards systems: “Earn 50 RLY for every user you refer - your referral also gets 50 RLY”
- Influencer rewards systems: “Distribute up to 2M RLY to your fans. Each fan can claim up to 100 RLY by joining the app”
- Creator incentives: “Create a video/blog post/podcast to promote RLY through your channel - you’ll get 30 RLY for any user that signs up through your custom link, they get 70 RLY each for signing up.”
- Community rewards: “SuperLayer is giving 75 RLY to every NYU alum over the next 3 months!”
- Other: Be creative, if you’re not sure whether a program will qualify you can confirm with the RLY network.
What tooling can I use to deploy these programs?
- You can use your choice of off the shelf systems or build in house ones.
- Operating costs should be covered by existing app budgets.
What happens at the end of the challenge?
- Any unused RLY goes back into the RLY Network pool.
- If deemed successful, RLY network will look to expand the program and distribute up to 700M additional RLY to acquire the next 7M users. Success will be measured as follows:
- Each application will be measured by the number of new verified user accounts + RLY collateral. Success definition is 1M new verified user accounts + 50% of the program locked into the application’s ecosystem. For example, if Rally.io distributed 10M RLY to 100K accounts, and 9M RLY leave the sidechain this would not be considered successful.
- As soon as possible, the program will be opened up to the broader RLY Ecosystem and additional third party developers in more and more open methods as we evolve the program and defend against sybil attacks
Call to 3rd party Developers:
Aside from Rally.io, Unite and SuperLayer, the 100M RLY Network Growth Challenge should be open to 3rd party developers as well. As of 10/1/2021, it is possible for application developers to build on top of Rally Network as peers to Rally.io and Unite.io. While application approval is still not fully self-serve, developers should be able seek authorization from the RLY Network Association to begin building and participate in the challenge. Interested developers could complete the association grant request form with a summary of their plan and The Association can consider these on a case by case basis and award up to 500k RLY per 3rd party dev or dev team.
Crypto-networks are still being valued primarily by the number of users / wallet holders in the network (Metcalfe’s law). We view this pilot program as the most direct way to onboard new users into the RLY network and drive social application usage, and it will also serve to increase community ownership of the circulating RLY supply to be closer to the original goal of 70%. If this initial program is successful then we can look to expand the program to an additional 700M RLY and also expand the program to the broader RLY ecosystem and additional 3rd party developers and partners.