Proposal on Delivery Mechanism of Community Activity Rewards

Summary/Abstract: This proposal is an addendum to the proposal titled: "Proposal to Enable Upgrade and Continued Evolution of Community Activity Rewards".

This proposal enables the community to vote on just the delivery mechanism of Community Activity Rewards without rejecting the other comprehensive upgrades which seem to have broad acceptance in Discourse. This proposal seeks the community's vote to either:

• Distribute coin rewards to users as $RLY based on pro rata ownership of the Creator Coin eligible for rewards as opposed to simply increasing the backing liquidity pool, OR

• Keep the current system of distributing coin rewards to creators and communities through liquidity backing the entire token bonding curve.

For the full discussion, please review the Discourse post to create a 2nd proposal on delivery mechanism - https://forum.rally.io/t/rewards-evolution/249/34

Background:

• As part of the comprehensive upgrade, distributing Community Activity Rewards as $RLY to all holders in a Creator Coin community was proposed. The advantage of this system is to enable creators to earn income as $RLY and potentially realize that income without having to sell their Creator Coin. The drawback of this system is that it doesn’t encourage rewards to be immediately added to the liquidity pool.

• The current flaws in the distribution system are fixed via the hourly mechanism. As Masongos succinctly states in the Discourse discussion: “Hourly rewards distributions fixes the problem, we don’t need to take the additional measures.”

Proposal

“Distribute in $RLY” Vote

• This vote would result in approval of the above terms to enable the core development team to enable Community Activity Rewards distribution in $RLY tokens on or after March 27, 2021 .

“Keep Current Mechanism” Vote

• This vote would result in rejection of these terms. The current distribution method would be maintained, and $RLY rewards would continue to be added directly to the liquidity backing Creator Coins (as they are today).**