Rally

Proposal This proposal recommends the allocation of a maximum total of 35M $RLY in the form of loans and grants to fund the $RLY liquidity strategies designed by Miguel Vias, the Rally community-appointed markets specialist engaged to identify liquidity strategies for $RLY in support of the community’s interests.

The below proposal summarizes key rationale behind the spend - please review the Discourse forum discussion for full details and community discussion: https://forum.rally.io/t/liquidity-strategy-budget-proposal-and-community-governance/990

Summary/Abstract: Growing liquidity for the Rally Network is a priority for the Rally community in order to support the creator economies on which the community is focused. The Discourse forum discussion noted above explains in greater detail the reasons why liquidity is necessary, which types of partners we’ll need to engage to grow liquidity, in which capacity we will engage those partners, how we’ll measure success, and lastly, the budget necessary to be successful.

To properly engage with the partners, and progress the metrics, outlined in the Discourse discussion, a very high-level budget request for the following 12 months is outlined below, consisting of up to a maximum total of 35M $RLY, to be deployed as follows:

Loans: $RLY deployed in the form of loans to centralized exchange market maker partners enable these key market players to provide consistent two sided markets.

• 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

Education/Marketing: $RLY deployed to exchange-specific education and marketing programs relating to the token are generally required by key exchanges.

• Amount of allocation: 30-40% of total budget
• $RLY will be returned to community if not used

Most of the budget is composed of loans which will be repaid either in $RLY or USD depending on the terms required by the relevant partners, and the educational/marketing spend will be returned if initiatives are not executed or are unsuccessful.

Proposal for review This proposal, if passed, will effectuate the following actions:

1. Approve $RLY Allocation Approve up to a maximum total of 35M $RLY, to be deployed in the form of Loans and Education/Marketing initiatives as outlined above. All loaned $RLY (or equivalent value) will be returned to the community, and all unused/unsuccessful education and marketing funds will likewise be returned.

2. Community Oversight and Governance Adopt the following structure for community oversight and governance of this spend:

• Quarterly report delivered to the community at the end of each calendar quarter (end of June and September, 2021)
• Quarterly community calls to review the report and collect community feedback on progress, spend, and strategy.

3. Appoint Community Agent Miguel Vias is appointed to act as the Rally community’s agent for purposes of identifying and vetting partners, vendors and exchanges, and overseeing and managing relationships with selected partners, vendors and exchanges. As the community’s agent, he will be authorized to sign necessary contracts and documentation on behalf of the community, and if appropriate and necessary, to appoint an appropriate legal entity/counterparty to sign necessary documentation on behalf of the Rally community.

Proposal

A Yes vote would approve the proposal outlined above, based on the rationale outlined in this proposal and the associated Discourse discussion.

A No vote would result in rejection of this proposal.