$RLY Network Decentralization

ABSTRACT This proposal recommends evolving the $RLY ecosystem from a single organization into a new structure with five separate projects: 1) Rally.io, 2) Rally Asia Project (name TBD), 3) $RLY Network Association, 4) $RLY Ecosystem DAO, and 5) SuperLayer Labs. All five projects share the common connection of being built on, developing or supporting the $RLY protocol.

Each of the projects will have its own budget (totaling $86M USDC / 345M $RLY), and in the case of SuperLayer Labs, the $RLY community will additionally have an investment opportunity ($25M USDC) and provide a credit facility ($20M USDC). Governance structures designed for each project will enable their success. Full details of the proposal can be found in this forum post (https://forum.rally.io/t/proposal-rly-network-decentralization/1240/35).

DETAILS As a first step, the non-profit $RLY Network Association will be launched to build and maintain the core blockchain technology, oversee network protocols and rewards, and oversee the $RLY community treasury. Rally.io and the forthcoming Rally Asia Project (a similar project to Rally.io serving the Asian Creator market - name TBD) will be region-specific creator monetization projects that will provide a blueprint for further global creator-focused expansion. Additionally, a venture studio called SuperLayer Labs aimed at supporting the launch of new tokenized consumer products leveraging the $RLY protocol will be unveiled soon. And finally, we propose creating a $RLY Ecosystem DAO, which will be directly run and governed by the $RLY community, that can disburse grants or loans from community funding of the DAO and oversee projects for the broader ecosystem.

With this new set of decentralized infrastructure in place, the $RLY protocol should become even more attractive for third-party developers, creators, or anyone to build a business on the $RLY protocol without any singular centralized entity or party controlling the ecosystem.

Summary budget (detailed breakdown and release schedule located in forum post): Rally.io - 150M $RLY and 60M $USDC Rally Asia - 70M $RLY and 17.5M $USDC $RLY Network - 55M $RLY and 6.5M $USDC $RLY Ecosystem DAO - 20M $RLY and 2M $USDC SuperLayer - 50M $RLY, 20M $USDC credit facility, and opportunity for community to invest up to 25M $USDC in new venture investments that SuperLayer leads

*Note: The 20M $USDC credit facility to SuperLayer is at a five percent (5%) annual interest rate payable annually with a loan term of thirty-six (36) months from the date of tranche draw.

RELEASE SCHEDULE, VOLUME RESTRICTIONS, and REPORTING: The first tranche of funding for each entity will be released within five (5) days of approval of this proposal. Prior to the approval of the second tranche, Rally.io and Rally Asia will submit their own clear and measurable milestones and/or KPIs to the $RLY Network Association. The milestones and/or KPIs will be quarterly measurables that will be considered for subsequent funding requests in tranches three to five. The release schedule is detailed in the forum post.

The granted $RLY will be subject to transfer volume restrictions as determined and set by the $RLY Network Association. A recommendation to the Association will be for all $RLY distributed under the Decentralization proposal to be subject to the below volume restrictions:

*Daily Volume Liquidation Limit by Category: Vendors - Up to USD$10,000 worth of $RLY Project - Up to USD$10,000 worth of $RLY

*Daily volume liquidation limit calculations to use the day’s opening rate based on https://coinmarketcap.com/currencies/rally/historical-data/.

Adherence to volume restrictions will be monitored by the $RLY Network Association. Any deviation from such restrictions will result in action by the Association.

Each of the Rally.io and Rally Asia projects will provide quarterly reporting on spend and results based on guidelines provided by the $RLY Network Association. Further, each project will provide monthly volume trade activity to the $RLY Network Association to demonstrate compliance with the volume restrictions.

A YES vote for this proposal would approve the decentralization plan and associated budgets to be distributed by the Community Treasury Manager per the tranche schedule detailed in the forum post.

A NO vote will reject the decentralization plan.