What Is Rally (RLY)?

What Is Rally (RLY)?

5 months ago

Rally wants to build up the creator economy, connecting fans with celebs in a more meaningful way.

What Is Rally (RLY)?

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Rally (RLY) is a social token protocol enabling creators to launch a customized social token and create an individual economy around their work. Currently the biggest social token project by market capitalization, Rally offers several benefits to creators and their fans alike.
First and foremost, launching a social token on Rally enables creators to monetize their community more directly. Instead of relying on sponsorship deals, merchandizing or other middleman-based monetization methods, creators directly benefit from their fans' investments in them. In this fashion, fans and creators can forge a more intimate connection, where the fan has a direct stake in the creator's work through holding equity. Finally, "super fans" that invest heavily can be rewarded accordingly, allowing for tiered access to exclusive benefits and perks.
Fans can support their favorite streamers, artists, musicians, gamers, athletes or general content creators in a more meaningful way and unlock access to exclusive perks and community rewards by holding a creator's coin. Furthermore, they can benefit from network rewards for community participation and without fees or advertising.
Founded in 2020 by several media professionals and experts in the creator economy, Rally's executives Bremner Morris, Kurt Patat and Nick Millman have combined work experience at Patreon, YouTube and other media companies. Among Rally's investors are a16z, Coinbase Ventures, Balaji Srinivasan, the ex-CTO of Coinbase, and Fred Ehrsam, the co-founder of Coinbase.

How Does Rally Work?

Currently, Rally operates with an invitation-only system and a limited capacity, ensuring that every creator's launch is successful. According to its website, Rally is seeking creators with engaged communities who produce consistent content and have strong ideas about integrating their coin into their communities.

In order to interact with Rally, fans need to create an account on Rally's website, either by signing up with their email or logging in with their Twitch account. Rally does currently not offer on-chain login through MetaMask.
Each Creator Coin is launched on Rally's private sidechain. To buy Creator Coins, fans have two options:
  • Buy RLY on an exchange like Coinbase, Uniswap (V2), KuCoin, Bithumb or Huobi. In that case, the purchased RLY needs to be bridged onto the Rally sidechain to buy Creator Coins. RLY is an ERC-20 token on Ethereum, so bridging comes with gas fees.
  • Alternatively, you can buy Creator Coins directly on the Rally sidechain, either with crypto or via credit card. Each credit card transaction is limited to $500.

To sell Creator Coins, you need to verify your identity through KYC. In addition, Rally has so-called flow controls when bridging out from their sidechain. The current limits are as follows:

  • 50,000 $RLY per user per day, with a global system max of 1,000,000 $RLY per day.
  • A maximum allowance amount defined as 5% of the total coin supply of any coin over 30 days (applies to the entire coin economy).
  • Individual accrual toward that maximum allowance over 30 days (defined per user).

Creator Coins represent the creator's reputation and are used to reward communities for their loyalty, engagement and participation enabling deeper, more meaningful connections. Each creator decides individually which perks and benefits holding their token entails.

Coins are traded along a linear token bonding curve that was designed to support larger communities, larger single-transaction purchases and fractional liquidity pools. The token bonding curve is designed as follows:

  • Total Creator Coin supply: 21 million;
  • Genesis amount: 5 million (24%);
  • Starting price: 1% of current price of RLY;
  • Vesting: 50K Creator Coins unlock immediately, 10% of supply unlocks after a six-month cliff, additional 3% of supply unlocks each month through the end of year three;
  • Vesting is 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).

What Makes Rally Unique?

Rally empowers creators and artists to build individual economies around their personal tokens and NFTs in a mostly seamless and fee-less way. The platform doesn't charge any fees and leaves it to creators to decide if they want to impose a resale fee on their Creator Coins.

Besides earning creator-based perks and benefits, fans receive community activity rewards designed to incentivize active participation in Rally. The more active a community, the more rewards it earns, with each participant receiving a share proportional to their holdings. Rewards are calculated by comparing the current week's total $RLY backing of a Creator Coin against the average $RLY backing for the last 4-week period.
In terms of tokenomics, 50% of the supply of RLY is set aside for network rewards. The remaining 50% of RLY are distributed as follows:
  • Seed investors (15.3%);
  • Team (14.2%);
  • Advisors (0.17%);
  • Sidechain operations (1%);
  • Treasury (3.3%);
  • Liquidity mining (2.3%);
  • Advisors and future collaborators (3.3%);
  • Developer ecosystem and technical partnerships (5.0%);
  • Creator, brand, and community partnerships (6.4%).
Some of the high-profile creators on Rally include:
  • HLTH community, a healthcare-focused coin;
  • Joe Pulizzi, founder of content creator media company called The Tilt;
  • Keisuke Honda, a former Japanese soccer player, coach and investor;
  • Gary Henderson, an online marketing guru;
  • Allie Strasza, a content creator and Twitch gamer.

What Are People Saying About Rally?

One of Rally's most prominent coins is Keisuke Honda, a former world-class soccer player from Japan. When launching his token in 2020, Honda said that his token involved a "new technology and new methods of reaching out to fans." Honda also added:

"I decided to start this project because I wanted to connect with my fans in a more open manner. We haven't decided what to do with the money we make from the [token] yet, but I promise to [consult and] disclose this sort of information to all token holders."

Another prominent Creator Coin is that of Jaylen Clark, a UCLA basketball player. He launched his coin to build his connection to his fans through various events, such as ticket giveaways. JROCK holders will also have access to exclusive content on his site.

CEO Bremner Morris said that creators are launching tokens to build a long-term connection with their fans and not to turn a quick profit. He believes that Rally can turn the creator-fan relationship into a symbiotic one with the help of social tokens.

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