[PROPOSAL] Should the Rally community approve the sale of $RLY from the treasury?

Summary/Abstract:

Proposal to approve the sale of $RLY by the Rally community to increase the Community Treasury

Motivation:

Currently, the Community Treasury is funded by the yield delegated from the Rally Yield Delegating Vaults (YDVs). By having a larger community treasury pool with diversified assets, the community can scale the Rally Network and empower the community to effectuate more development and engagement.
A community-approved sale of $RLY tokens, where the proceeds of such sale would be directed to the Community Treasury, would enable the Rally community to raise funds for the Community Treasury in ETH and expand the distribution of the $RLY governance token in the process.

The structure of this token sale is designed to maximize control to the Rally community. Only the community can choose to pass it, and the community will have full control over the proceeds generated by it. Unlike a traditional financing that benefits a single party or entity, this $RLY fundraise will benefit the decentralized Rally community.

The engagement of a third party to effectuate this token sale will benefit the Rally community in a number of ways:

1. The third party will manage the transaction to ensure that participants in the sale are those interested in a long term stake in the Rally Network and its vision to operationalize social tokens and enable creators to build digital businesses.
2. Lock-ups on $RLY sold through this fundraise require third party oversight to ensure that the $RLY is properly custodied or locked into a smart contract to comply with such time-based restrictions.

Additional Community Approval of Final Terms:

A target of up to 500 million $RLY (8x circulating supply & 4.80% of the total Community token allocation) will be the maximum allocation to be sold, with the intent to to give a discount to purchasers on the average price in the last 7-30 day trading period in return for 12 month to 24 month lockups. Note this is the maximum number of tokens to be sold, while the actual amount will depend on the market demand.

This Snapshot proposal will occur in two parts, this proposal being the first part. The second part will include a final approval for the total amount actually sold, and will be presented to the community for final approval. Following finalization of terms and purchaser commitments, a new Snapshot proposal will detail all material terms and will be posted to request community approval to complete the sales.

A Yes vote for this proposal would accomplish the following:

1. Approve the release of up to 500,000,000 $RLY from the community token allocation to be sold in a community token sale, where the proceeds of any sale will be directed to the community treasury.

2. Appoint Rally Genesis Team to engage a third party agent on behalf of the community to effectuate the fundraise, including preparing terms and term sheets, discussing and negotiating with potential purchasers, and preparing any necessary documentation. Note: no sale will be made until final approval of terms by the community, as noted above.

A No vote would make no change.