Proposal to Change Creator Coin Restrictions

Summary/Abstract This proposal seeks to make changes to certain restrictions imposed on Creator Coin to increase flexibility and benefits, but maintain protections, for Creators and their communities.

Details Creator Coin restrictions are currently spread across multiple parts of Rally’s tech stack with some inconsistencies between what is represented in the display and what is allowed by the system. To review the full write up on the current state of Creator Coin restrictions, redesign objectives, and the thinking behind the proposed changes, please review the full discussion on Discourse: https://forum.rally.io/t/creator-coin-restrictions/136

Proposed Changes This proposal, if passed, will make the following changes to Creator Coin restrictions:

1. Modify Creator flow control
   • Increase max allowance to 5% of circulating supply
   • Build to allowance based on time instead of community activity
   • Allowance still subject to vesting restriction below
2. Introduce Creator vesting of genesis supply
   • Initial supply of Creator Coins unlocks for Creator use over 12 months
   • Unlocked supply still subject to flow restriction above
3. Add flow control to all users
   • No vesting based restriction for general usage but introduce flow based transfer and sell restrictions that mirror Creators
4. Add slip based fee for Creator Coin buy/sell conversions
   • Tax sells of Creator Coin based on how far we move along the bonding curve with the transaction
   • Fee is calculated in Creator Coin and transferred in full to Creator
   • Fee is a configurable proportion of the $RLY liquidity that will be removed from the pool based on this trade
5. Empower development team to iterate on specific parameters used for flow controls, vesting schedule, and slip based fees
   • Flow controls to begin with max allowance of 5% of circulating supply with a build to max allowance occurring over 30 days; development empowered to modify max allowance between 1 and 10% and build time to max allowance between 7 and 60 days
   • Vesting schedule to begin by vesting Creator genesis supply monthly over 12 months; any modifications to be resubmitted for a governance vote
   • Slip based fee to begin by taxing sales of a Creator Coin the percentage of the total liquidity pool available for the Creator Coin removed by the transaction. This is adjusted by a scalar factor that will begin at 1 (i.e. if your trade will remove 10% of the liquidity pool, the trade will incur a 10% slip fee transferred to the Creator); development empowered to modify scalar between 0 and 1 for experimentation
6. Allow configurable exclusions to support known transactional use cases “transfer to” exclusion ensuring commerce and donations are not unnecessarily restricted
   • “transfer from” exclusion ensuring air drops or other activities generally related to token distribution are not unnecessarily restricted
7. No change to:
   • Compliance and risk based limits for USDC redemptions
   • Credit card purchase limits
   • Risk based bridge limits

A YES Vote will implement the above Proposed Changes to Creator Coin restrictions as they currently exist

A NO Vote will result in no change to current Creator Coin restrictions