RLY Ecosystem Whitepaper

Last Updated: 12/15/21

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RLY Ecosystem Core Projects

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Table of Contents
1. Abstract
2. Introduction
3. The RLY Ecosystem Core Principles
4. RLY Network Association
4.1. Mission Statement
4.2. About RLY Network Association
4.3. Team
5. Rally.io
5.1. Mission Statement
5.2. About Rally.io
5.3. Social Tokens
5.4. NFTs
5.5. Rally.io Councils
5.6. Team
6. Unite.io
6.1. Mission Statement
6.2. About Unite.io
6.3. Team
7. SuperLayer
7.1. Vision and Mission Statement
7.2. About SuperLayer
7.3. Team
8. RLY Ecosystem DAO
8.1. Mission Statement
8.2. About RLY Ecosystem DAO
8.3. Governance
8.4. Quadratic Voting
9. Community Built Additions to the RLY Ecosystem
10. $RLY Tokenomics: Ecosystem, Applications and Association
10.1. RLY Ecosystem Tokenomics
10.1.1. Budget Allocation
10.1.2. Release Schedule
10.1.3. Ecosystem Token Distribution
10.2. RLY Application Tokenomics: Rally.io & Unite.io
10.2.1. Transactions
10.2.2. Buying and Selling Creator Coins
10.2.3. Flow Controls
10.2.4. Token Bonding Curves v1
10.2.5. Token Bonding Curves v2
10.2.6. Community Activity Rewards
10.3. RLY Network Association Tokenomics
10.3.1. Staking: Providing Liquidity to DeFi
11. Conclusion

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1. Abstract
The RLY protocol began its development three years ago with the goal of onboarding the
next 100 million users into crypto. Herein the RLY protocol provides the economic
infrastructure that simplifies consumer social application development. It aims to enable a
continuous liquidity protocol, token bonding curves and adjustable $RLY network rewards
and emission rate.

The Rally.io consumer facing application was launched in October 2020 to empower
creators by allowing them to mint their own social tokens, or “creator coins”, and make these
creator coins available to the public, accordingly changing the dynamic of how creators
engage with their community of fans. The creator coins provide the utility of improving
engagement and monetization between a creator and their audience of followers, while
enabling the community to greater participate in the economy of each creator, thereby
aligning incentives.

In order to achieve further decentralization and accomplish the goal of onboarding the next
100 million users to crypto, these elements have since evolved into the RLY ecosystem.
Progressive decentralization has been part of the core commitments of the project founders
from inception and is an important step in laying the foundation for the RLY ecosystem and
its success. In August 2021, the ecosystem took a big step towards further decentralization
by drawing a clear distinction between the core infrastructure and governing community of
the RLY protocol at the network level and the consumer-facing applications built on top of it.
As part of this step, five independent entities were established as the building blocks that
will help the RLY ecosystem achieve its original vision.

In short, the RLY ecosystem is structured as follows:

1. RLY Network Association: Non-profit association that builds and maintains core
blockchain technology, supervises network protocols and rewards, and oversees part
of the community treasury.
2. Rally.io: Creator monetization and community engagement project built on the RLY
protocol.
3. Unite.io: Project built on the RLY protocol for creators, artists and brands in Asia to
launch their own personal cryptocurrencies and NFTs in a seamless digital economy
with their communities by offering multiple benefits and access points.
4. SuperLayer: A crypto venture studio building tokenized consumer applications on top
of the RLY Network.

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 5. $RLY Ecosystem DAO: A decentralized, autonomous organization run directly by
$RLY token holders to govern and distribute a periodically refreshed budget for the
benefit of the RLY network.

One common thread shared across the RLY ecosystem is the four core principles that drive
the focus for the RLY ecosystem as a whole:

1. Ownership. Instead of “renting” the platform, users and owners of the $RLY token
own the platforms that they use and interact with.
2. A welcoming custodial experience. Because custody in crypto can be intimidating
and requires tech-savvy users, the RLY ecosystem enables applications to provide a
welcoming custodial experience whilst maintaining the principle of ownership.
3. Compliance with changing regulatory landscape. In order to safeguard and maintain
principles one and two, a core focus is on staying compliant with and ahead of
evolving regulations affecting the crypto industry.
4. Focus on developer API integrations. Content creators and Web2 participants use a
host of platforms that essentially form a web of interconnectivity. The RLY ecosystem
aims to be a part of this network, not an island. Functional API integrations are
essential to this principle and key to onboarding the next 100 million users.

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2. Introduction
The internet as a medium underwent phases of development since its inception as a TCP/IP
protocol in 1983. The earliest days of the internet, also known as Web 1.0 (Web1), were
marked by static pages that simply functioned to present information. Websites were
read-only and connected by hyperlinks meaning there was very little for users to do in terms
of interacting with content. Websites such as Yahoo, Craigslist, Britannica Online, and the
first iterations of CNN’s websites were popular Web1 places for example. Content creators
were few and far between, pictures would load slowly, sometimes line by line and without
easy-to-use digital payment rails, and the ability for creators to monetize content was next
to impossible.

The emergence of Web 2.0 (Web2) however had a sizable impact on creators and their
ability to propagate and monetize their creative endeavors. The popularity of the internet
increased, and developers & web builders found more engaging and innovative ways to
participate online. Web2 is marked by dynamic websites that offer user generated content.
Facebook, Twitter, YouTube and Flickr are excellent examples of Web2’s dynamic user
generated content, as is the transition from the static Britannica Online to the user
generated and dynamic Wikipedia. Web2 enjoys a participatory culture, interoperability
between devices and is used by billions of people every day.

For creators, Web2 platforms are fundamentally important. Whereas Web1 offered very little
for creators, Web2’s everchanging, content-sharing, user-generated nature is a playground
for creators. Without question some of the most popular and well-known individuals around
the globe are famous YouTubers, TikTokkers, Twitch streamers, etc. These creators have not
only embraced the Web2 transition but have been fundamentally important in its success.
Without the content they create, the most successful platforms delivering the content that
we consume on a daily basis would be nowhere near as popular. Web2’s revenue sharing
models and payment/donation services also enable creators to monetize their content far
more efficiently than their Web1 counterparts.

The transition from Web2 to Web3.0 (Web3) is a very recent development enabled (in part)
by blockchain technology. The breakthrough herein is that blockchain technology allows for
digital ownership without an intermediary. What this means is that contrary to Web2’s
rent-a-platform model, creators and users are now part owners of Web3 platforms.
Blockchain technology is also permissionless, meaning that any and all users/creators can
become part owner of the platform and imagine ways to contribute to it. This enables a

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more democratized and decentralized form of platform ownership not possible in the Web2
space.

Surprisingly, with the exception of non-fungible token (NFT) platforms, creators have yet to
fully embrace the capabilities of Web3. Perhaps this is due to the stickiness of Web2, the
lack of technical acumen or the complexity of blockchain, but there have been very few
successful Web2 creator-influencers that have made the leap to Web3. This is where the
RLY ecosystem can make a difference. Concretely, the RLY ecosystem can enable
developers and builders to bring Web3 applications to a broad range of content creators,
influencers, brands, and more, bringing in their diverse communities and fan bases and
thereby onboarding the next 100 million users to crypto.

In order to achieve this goal, the RLY ecosystem is currently defined by five independent
entities. The reasoning behind this approach is two-fold. First, each entity has a purpose
that is unique, but each is symbiotically connected to the technological infrastructure of the
RLY protocol in a manner that will support the growth of the RLY ecosystem as a whole,
including facilitating the development of new ecosystem participants in the future. Each of
these five entities has a specific role to play in achieving that goal.

Second, as previously mentioned, the RLY ecosystem is built on the commitment to achieve
progressive decentralization. The division into five independent entities with the RLY
protocol as the connective tissue supports this vision. Note that at its core, the RLY
ecosystem was developed to create an economic infrastructure to simplify the development
of tokenized consumer social applications. Over the past three years, the core infrastructure
and capabilities were developed to help creators and their fan communities onboard into
crypto via both the RLY protocol as well as the first consumer-facing application, Rally.io.
With the establishment of separate entities, the core infrastructure is managed and
maintained by the non-profit association (RLY Network Association), while creators and
users will see the development of more user-focused applications (starting with Rally.io and
Unite.io), more control can be put in the hands of the community (RLY Ecosystem DAO) and
additional product ideas and development can be incubated and launched (SuperLayer).
Specifically, we see five primary benefits to decentralization:

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1. Ensure no singular party will control all the rules of the protocol by firmly
establishing RLY Network Association and the projects built on the RLY protocol,
like Rally.io, as independent entities with different missions, goals and leadership.
For the success of all entities, it is important that there is a clear separation between
the RLY Network Association and the individual projects built on the RLY protocol,
including Rally.io. The RLY Network Association is a non-profit project that maintains
the RLY protocol technology, oversees network-wide protocols and rewards, and
oversees part of the community treasury. The Association will not develop any
consumer-facing applications, but rather focus on helping new products and
applications build on the network, as well as provide much more data and
transparency into what is happening throughout the network. Rally.io is the first
creator monetization project that utilizes the RLY protocol, and will be just one of
many projects independently built on the RLY protocol. By forming the non-profit RLY
Network Association, we are ensuring that the RLY protocol can continue to develop
and maintain network level oversight for the benefit of the whole network, setting the
stage for Rally.io and future projects to leverage the RLY protocol.
2. Clearly delineate the governance roles and responsibilities of $RLY token holders.
One of RLY Network Association’s primary tasks is to clearly define the governance
and responsibilities of $RLY token holders. As part of this decentralization evolution,
the RLY Ecosystem DAO will be launched and $RLY holders will immediately control
the RLY Ecosystem DAO community treasury. In the future, $RLY holders will vote on
representatives to govern the RLY Network Association. The initial leadership of the
RLY Network Association will be tasked with shepherding the launch and
establishment of the Association with the goal of transitioning its governance to the
RLY community over time.
3. Enable global expansion. Mirroring the success of Rally.io, the Unite.io project will
launch as a standalone project to attract creators, artists and fans in the greater Asia
region. Those who share a similar desire to be empowered to build their digital
communities directly with fans, with different cultural and geographic characteristics
that drive their content and fan base will find a home here. This will serve as a
blueprint to build and launch similar projects in other regions around the world.
4. Empower experimentation to build and launch next generation apps that leverage
the RLY protocol. Rally.io and Unite.io are just the start. A new project, SuperLayer,
led by Kevin Chou, will partner with developers to build new applications and
venture-fundable businesses leveraging the RLY protocol. In addition, the RLY
Ecosystem DAO will be independently run by the $RLY token holding community to
identify opportunities for new projects to enable further development on the network.

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5. Embrace the promise of blockchain. This move towards greater decentralization of
governance and stakeholders through the creation of independent and symbiotic
projects is enabled by the power of blockchain technology. This has been the vision of
the RLY protocol from the beginning - that a gradual evolution towards greater
decentralization will contribute to the stability of the network while also cultivating a
vibrant, engaged community who will own, control and continue to drive it.
We are at an inflection point now with the RLY protocol heading into a new era of
rapid development and scalable growth. We could not have gotten to this point
without the power and passion of the RLY community. By further empowering the
community today by fracturing the large central actor at the center of Rally, we
believe we’re entering a phase of exponential growth of the network in multiple
dimensions.

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The diagram below illustrates the structure and connectivity among the current entities in
the ecosystem:

As illustrated in the diagram, the RLY protocol and its native $RLY ERC20 token exist on top
of the Ethereum main net protocol. The RLY Network Association in turn houses the core
blockchain technology and is responsible for managing updates to the RLY protocol. The
RLY Ecosystem DAO in turn is run by $RLY token holders and will primarily distribute grants
of $RLY to projects building on or enhancing the RLY ecosystem. In order to access the RLY
sidechain (hosted by Forte), $RLY ERC20 token holders must use the $RLY bridge. This will
allow them to participate on Rally.io, Unite.io and future Superlayer projects.

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3. The RLY Ecosystem Core
Principles
1. Ownership. The most important breakthrough enabled by blockchain technology is
ownership in the digital realm. For us, ownership is not only ownership over a specific token
or singular component of the RLY ecosystem but ownership means providing all users,
creators and token holders with the agency over all aspects over the RLY ecosystem, as is
reflected in the ambition of progressive decentralization. This includes the $RLY token
holders’ ability to vote on proposals, new hires and how the treasury is deployed. Ownership
also extends to the Rally.io and Unite.io ecosystems, which enable creators and fans alike to
harness the breakthrough of digital ownership by truly owning their respective economies
through creator coins and NFTs.

2. A welcoming custodial experience. The RLY protocol has the capacity to enable
hundreds of millions of new crypto users to onboard over the next decade and, in order to
do so, a welcoming custodial experience is fundamentally important. Our reasoning is that
custody is one of the more daunting aspects of Web3. For many people, the concept of
private keys, different digital wallets, the finality of settlements and the possibility of losing it
all when making a mistake is a significant hurdle to overcome. These concerns are very real
and this is one of the predominant reasons that inhibit millions of people from participating
in Web3 economies and platforms. The various applications built on the RLY ecosystem
instead will provide a welcoming custodial experience where custody concerns are taken
away but the principle of true ownership is maintained.

By creating multiple trust-minimized bridges between custodial and non-custodial

environments that are easy to use and accessible for all and enabling new experienced
crypto users to exit into non-custodial wallets we aim to combine true ownership with a
welcoming custodial experience. This offers a seamless experience that billions of internet
users have come to expect from Web2 platforms and bring those to the RLY ecosystem
projects.

3. Compliance with evolving regulations. It is no longer a question of if, but rather when
and how regulation will affect the crypto industry. In order to safeguard the RLY community,
all RLY ecosystem projects must continue to stay ahead of the ever-evolving regulations in
all regions of the world. This allows for RLY project users and token holders to participate
without fear of breaking the law or having their participation be inhibited at a later date.

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In order to achieve regulatory compliance, the RLY ecosystem has established a
commitment to compliance-focused practices through engagement with advisors and
expert counsel in all relevant jurisdictions since the project’s founding. Founders of the RLY
protocol also worked alongside Forte to help launch a new independent compliance entity,
Provenance Technologies, Inc. (“PTI”). In the last three years, PTI has applied for and
acquired money transmission licenses across all US states, territories and protectorates
where required to ensure compliance for applications within the RLY ecosystem. The goal
herein is to keep creators and their communities safe and compliant and guard against bad
actors in the RLY ecosystem. For the biggest content creators, influencers, celebrities,
athletes and musicians in the world, as well as their communities and fans, keeping
everyone on the right side of the evolving laws is central to building their brands using new
blockchain technology.

4. Developer API integrations. Creators today use a number of social, content, monetization
and communication platforms to engage their community. The RLY ecosystem shouldn’t be
yet another spoke, but rather a different layer altogether that helps creators and
communities connect all their Internet activities together in one crypto hub. Third party
developers should be empowered to build on Web2-style API’s for digital integration that
allows creators to incorporate the RLY ecosystem into their existing audience interactions.

API integration also lowers barriers to entry and provides added value to the platforms and
ecosystems that creators and fans are comfortable with. In turn, creators and fans will use
their new crypto assets, drawing in users who would otherwise be skeptical, ultimately
propelling the RLY ecosystem to being adopted as the go-to creator crypto ecosystem. The
benefit of a custodial solution, which requires trust, is that Web2 APIs and integrations
become easy to build into custodial experiences, and that traditional Web2 platforms and
their engineering/product teams don’t need to hire specialized smart contract integration
engineers.

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4. RLY Network Association
4.1. Mission Statement
To drive growth to the RLY ecosystem by building and maintaining the core blockchain
technology, overseeing network protocols and rewards, and managing the RLY community
treasury.

4.2. About RLY Network Association

The RLY Network Association is a Switzerland based non-profit organization responsible for
maintaining and developing the RLY ecosystem’s core blockchain technology. The decision
to form a Swiss non-profit was made because Switzerland has established itself as a hub for
reputable projects based on regulatory clarity, with Zug, Switzerland hosting notable
organizations such as Ethereum Foundation, Shapeshift and Tezos.

The Association’s goal is to enable consumer friendly, trust minimized and decentralized
communities by providing technical and economic infrastructure that simplify development.
It aims at developing the continuous liquidity protocol, creator token bonding curves and is
capable of tweaking the network rewards and emission rate. The Association also intends to
integrate the RLY ecosystem with multiple blockchains in an effort to make the RLY
ecosystem blockchain agnostic while maintaining a certain threshold in terms of
self-sovereignty, usability and decentralization. This will lead to wider adoption and
synthesis with the wider crypto-economic landscape.

The multiple entry points to the RLY ecosystem will also be supported by a variety of
applications that the Association will grant development funds to, which in turn make the
RLY ecosystem more approachable. The Association’s mission is also to increase
accessibility which will be achieved by building the necessary Ethereum and Solana mainnet
smart contracts, sidechain SDKs and APIs, providing the right developer documentation and
fostering the developer community with RNA developer participation and consultation.
Finally, by recommending partners the RLY ecosystem can integrate with, in terms of KYC,
payments and compliance, the Association aims to further promote accessibility.

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The Association aims to drive expansion and adoption via licensing and grants. The
Association has already implemented their plans to distribute network rewards to: 1)
upcoming applications to bootstrap growth and 2) reward existing applications for their
ongoing contributions to the network. The Association is also actively seeking new ways of
using network rewards to further incentivize growth and adoption of its ecosystem and
protocol. The most recent proposal (as of 11/16/21) can be found here.

The Association is also responsible for overseeing and administering the Community
Treasury. This treasury consists of:

- Community Treasury via Yearn Vaults (3.3% overall supply)

- Liquidity Mining Program (2.3% overall supply)
- Advisors and Future Collaborators (3.3% overall supply)
- Developer Ecosystem and Technical Partnerships (5.0% overall supply)
- Creator, Brand and Community Partnerships (6.4% overall supply)

The Association will be led by its Board, made up of seasoned executives with experience in
building community networks, background in developing blockchain and crypto-forward
projects, and a commitment to forwarding the mission of the RLY ecosystem. The Board of
the Association is tasked to make decisions in line with the non-profit mission of the
Association, and keeping with the goals to maintain the best interests of the whole of the
RLY ecosystem. Transparency is important in any ecosystem, and where transparency can
be given, it will be prioritized.

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4.3. Team
● Amit Ranade (Executive Board Member)- A veteran leader in technology and digital,
Amit Ranade is the current chairman of the RLY Network Association. In this role, he is
responsible for advancing the product and technology strategy for the RLY Network,
reviewing grant applications seeking funds from the association treasury to build on
top of the network, and overseeing distribution of Community Activity Rewards. Prior
to joining Rally, he was COO of Lantern, an early entrant in the digital health space. He
supervised a cross functional team spanning product management, marketing, and
customer success while attempting to bring an app based treatment for anxiety and
depression to market. He also served as President of Kabam Publishing where his
team was responsible for marketing, platform technology, player experience, and data
analytics. He is a graduate from Stanford University with a degree in Computer
Science.
● Weiwei Geng (Executive Board Member)- Weiwei was co-founder of Rally and served
as Managing Director China at Gen.G, a leading esports organization with top teams in
China, South Korea, and the US. Previously, Weiwei was Executive Producer at Kabam
from 2012 to 2017, overseeing the development and operation of several successful
mobile games produced in Kabam Beijing studio, generating over $100M yearly
revenue in total. Prior to Kabam, Weiwei was Producer at Joyport, a leading game
developer and publisher in Asia.
● Ronen Kirsh (Executive Board Member)- Ronen Kirsh is leading Strategic
Partnerships at Forte to develop and execute crypto-native and Layer-1 blockchain
partnerships, bringing Forte closer to its vision of enabling a multi-chain gaming
platform. Ronen has founded and invested in multiple organizations and initiatives
with the mission of promoting greater adoption of cryptocurrencies, blockchain, and
privacy technology in real-world applications. Previously, Ronen founded Dekrypt
Capital, San Francisco Blockchain Week and CryptoEconomics Security Conference,
Evmos, and Blockchain at Berkeley.

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5. Rally.io
5.1. Mission Statement
Rally’s mission is to provide communities ownership over the value they create. Rally builds
the tools and services that enable the creation, launch and growth of token-based
communities inclusive of social tokens and NFTs. We ensure abundant utility and
interoperability by building and partnering with the entire creative ecosystem.

5.2. About Rally.io

For many of the earlier adopters of $RLY, Rally.io is the platform they are most familiar with.
Rally.io hosts the creator coin economy in which $RLY token holders can freely trade their
$RLY tokens for NFTs and trade social tokens. The best way to understand Rally.io is as a
platform that allows for the tokenization of creator economies and community engagement
projects. Rally.io is built on the $RLY protocol.

Since its inception Rally.io has launched creator (social) tokens for more than 200 creators
and rewarded more than $58m USD in $RLY (more on rewards later) to creators and their
communities. The Rally.io website has also seen a major overhaul that provides a distinct
brand identity that appeals to creators and fans alike.

The core value proposition of Rally.io is to provide creators with no-code tools and a
protocol framework to create engagement and interact with a community in which
incentives are aligned. Herein aligned incentives describe an ecosystem wherein all
participants (creators, fans and the platform) are equally motivated to develop and grow as
it benefits them uniformly. Rally.io makes cryptocurrency accessible for all and unlocks the
powerful tools to decentralized ownership. Rally.io aims to provide a fundamental use case
for crypto and its ability to power personalized business models and creator economies.

5.3. Social Tokens

The way that Rally.io makes this possible is by enabling creators to mint social tokens. In
effect, a social token is a cryptocurrency that represents ownership within a creator’s
community. The immediate effect hereof (as we compare Web2 to Web3) is that as a
community grows, more participants will own the creator’s coin and democratize community
ownership. By extension it enables creators to give back to their communities while
maintaining control over important parameters. On top of that, the Rally.io architecture
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allows for fee-less trading and transactions, governance, non-fungible token (NFT)1 issuance
and guaranteed liquidity. All of which empower the creator, their respective communities and
enable innovation in Web3 business models.

Creator coins reside on a dedicated proof-of-authority (PoA) Ethereum sidechain hosted by

Forte. The PoA sidechain features near-instant transactions at zero fees, which means that
micro-payments can easily be facilitated. This enhances the usability of creator coins,
functions to lower the barriers to entry and increases rates of adoption. On top of that, the
PoA architecture does not require mining, thus the impact on the environment significantly
decreased compared to Proof-of-Work (PoW). Furthermore, a dedicated sidechain also
allows for regulatory compliance and oversight and enables the RLY Network Association
team to implement the proposals voted on by $RLY token holders.

Creator coins enable the community to benefit from a growth in popularity, but they do not
provide an immediate form of income. This is achieved through the weekly Rally Community
Rewards. These rewards entail a x-amount of $RLY issued to communities and their creator
coin holders. You can find an overview here. Crucially, what these rewards enable is that as
a holder of a creator coin, you are entitled to a certain amount of $RLY each week, see it as
a form of staking. What should be noted however is that these $RLY rewards are designated
to communities that are growing in amount of $RLY backing. This provides all owners of the
creator coin with extra motivation to perpetuate the community. At the same time, it means
that $RLY rewards will not flow to communities that simply wish to extract value from the
community.

Rally.io users or $RLY token holders buying or selling creator coins will affect the price. In
order to simplify this process Rally.io makes use of Token Bonding Curves (TBC’s) as
opposed to an orderbook. The reasoning behind this is that TBCs make buying and selling of
tokens far easier and more predictable for end-users. Instead of relying solely on trading
activity to provide liquidity and generate price discovery, a token bonding curve creates
reliable pricing and availability. If you would like to learn more about Token Bonding Curves,
buying and selling creator tokens, or other components related to token economics, please
visit the tokenomics section for a detailed explanation.

1
Note that, although the NFTs currently reside solely on the Forte sidechain, bridging to the Ethereum main chain is a feature on the current roadmap.

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5.4. NFTs
Non-Fungible Tokens (NFTs) are one-of-a-kind, digitally native and verifiable assets that are
tradable through blockchain technology. These assets can be anything ranging from digital
art, Twitter messages, tickets, sport highlights or songs. What makes NFTs special is that
they create a degree of scarcity on the internet (where most things can exist in near infinite
supply), which means that, as long as there is demand, these NFTs are considered valuable.

The crypto world at large views creator coins and NFTs as independent and distinct
components of a creator’s migration into crypto. Similar to how traditional economies
function by coupling cash (a fungible means of exchange) and items for purchase
(non-fungible goods), a crypto economy flourishes when there are fungible social tokens
and non-fungible tokens. Fans want reasons to buy, use and hold creator coins and our
creators have pioneered countless ways to power experiences with those tokens. But they
also want tangible goods and services — as well as experiences — that they can own in
exchange for those social tokens. NFTs and social tokens paired together tie the creator’s
crypto economy into a cohesive whole.

Rally.io allows creators to mint their own NFTs that are unique to their brand and community.
These NFTs are minted on the Ethereum sidechain where full ownership is guaranteed and
custodied. There could be any number of reasons for a creator to mint NFTs, ranging from
unique artworks, to Proof-of-Attendance NFTs that allow an owner to prove that they were
present at a particular event. Given their non-fungible nature, these NFTs can become an
integral part of the creator’s community. For example, if a fan wins a championship event,
they could be issued with a uniquely designed NFT trophy that symbolizes their victory.
Similarly, fans that attend that championship could be issued a Proof-of-Attendance NFT
that allows immediate access to consecutive championships. Ultimately, Rally’s goal is to
enable creators to come up with unique business models that encourage fan participation
and provide added value to the community. Innovative use of NFTs play a key role in
achieving this goal.

Many early adopters have hyped the NFT phenomenon in a very narrow way: large,
infrequent transactions meant to drive maximum profit and divorced from engagement with
a broader fan base. While these massive financial outcomes have been splashy and
generated a ton of buzz in the industry, the focus is almost always on price and scarcity
while giving less thought to utility, access or engagement. This does creators and their fans
a disservice — the current transactional focus diminishes the exciting ways in which
creators can engage with their fans for the long term.

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In trading NFTs it is possible to consider royalties. More specifically, it is possible for the
creator to launch an NFT where a percentage of proceeds from any future sales is
automatically paid to the NFT’s creator. Herein the structure and nature of the royalty
mechanism is based on the way that the NFT is designed and launched. From the
perspective of the creator, a royalty mechanism allows for a form of income that allows
these creators to participate in secondary sales of their work, content or products. In turn,
creators can choose to sell these NFTs at a more accessible price given that revenue will be
generated from the secondary markets. It also helps stimulate the creation of NFTs that are
interesting to own or trade. From the perspective of fans, NFTs also encapsulate value. We
by no means assert that they are investment vehicles, instead NFTs demonstrate your ability
to support your favorite artist/creator, or because you find the NFT aesthetically pleasing or
exciting to own.

Check out the Rally.io NFT marketplace here.

5.5. Rally.io Councils

Rally.io recognizes that community leadership is an essential part of the path to success. To
this end, Rally.io has established two advisory councils composed of staff, creators,
developers and community members whose role is to work with the Rally team to inform our
policy and product roadmap, drive innovation and new app development, and also approve
inbound creator coin applications for launch. With that in mind the Rally.io team established
an additional council whose role will be to work with the Rally.io leadership team to inform
the bigger picture roadmap.

The Creator Advisory Council (CAC) is a representative group of Rally.io staff, creators, and
community members whose role is to:

● Act as final evaluators on the adoption of new creator coins in the Rally.io ecosystem.
● Be ecosystem experts who can offer insights and direction on how we steward our
creator economies.
● Represent the creator community and their needs to staff.
● Support innovative best practices and reward creators who are positively contributing
to the ecosystem through mentorship, programming, and other activities and drawing
from a budget of 150k $RLY per quarter.

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To begin, the council will meet on a weekly basis, and then as the group gets established,
regular meetings will occur bi-weekly. The council is intentionally diverse in make-up, and
will represent the gender, ethnic and professional diversity of the creative community. It is
composed of: 2 Rally.io staff members and a community elected mix of 3 Rally.io creators
and 2 advisors drawn from the broader community. The term for a council member is 1 year,
and can be renewed if reelected by the community.

The CAC engages with the Rally.io creator community in the following ways:

● Reviews organic creator applications to assist with business plans

● Mentor creators
● Innovation awards
● Events/Programming: Creator community meetings
● Feedback
● Evangelism and Community Ambassadorship

The Community Developer Council (CDC) is a representative group of Rally.io staff, creators,
developers, and community members whose role is to:

● Grow and support the verified developer community with programming and grants
● Support the Rally.io team and Dev ecosystem as we grow our app directory.
● Evangelize the Rally.io ecosystem.
● Engage with the Rally.io team as APIs and other developer resources are created with
the end goal of informing the direction and success of new resources.
● Support the developer ecosystem with grants, rewards and programming, drawing
from a budget of 1M RLY per quarter.

To begin, the council will meet on a weekly basis, and then as the group gets established,
regular meetings will occur bi-weekly. All in, the expected average weekly commitment is up
to ~5 hours per week. What should be noted is that any members already compensated by
Rally.io will not be compensated for council participation.

Similar to the CAC, the CDC council is intentionally diverse in make-up, and will represent
the gender, ethnic and professional diversity of the creative community. It is composed of 6
members: 1 Rally.io staff member, 1 Ambassador, and a community elected mix of 3
Community Developers and 1 advisors drawn from staff, creators, and the broader
community. The term for a CDC member is 1 year, and can be renewed if reelected.

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The CDC engages with the Rally.io development community in the following ways:

● Mentorship
● Events/Programming: Jams/Hackathons, Demo Days
● Grants: Reviews and Awards
● Bounties/Activity Rewards
● Feedback
● Evangelism and Community Ambassadorship

5.6. Team
● Bremner Morris (CEO)- An industry thought-leader and innovator in the creator
economy space, Bremner Morris is CEO of Rally where he is responsible for driving the
awareness and adoption of Rally in the creator, fan and crypto communities.
Previously, he served as the community appointed CMO/CRO for the $RLY project
overseeing all go-to-market initiatives.

Prior to joining Rally, Bremner worked for Patreon for 3.5 years where he oversaw the
development of Patreon's go-to-market organization. Bremner was the initial GTM hire
within the business and served as the Head of Go-to-Market and Revenue at Patreon.
During his time there he built out a team of 45 people across creator partnerships,
marketing and creator success and drove significant creator adoption and
monetization on Patreon's platform. Additionally, Bremner directly oversaw Patreon's
international expansion and built out the go-to-market team in Berlin and London.

Prior to working at Patreon, Bremner led business development, channel partnerships

and customer success at AppDirect, an enterprise-SaaS marketplace. Bremner
started his career in investment banking and studied financial economics and
government at Claremont McKenna.

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● Nick Millman (VP, Creator Partnerships)- As Vice President, Creator Partnerships at
Rally, Nick focuses on creator acquisition and helping expand Rally into new and
diverse verticals and creator niches.
Prior to joining Rally, Nick was the COO and founding member at BratTV, one of the
preeminent Gen-Z entertainment companies. Nick helped grow BratTV into a digital
media powerhouse with billions of views, millions of fans, and a $30m revenue run
rate.

Nick was formerly the Global Director of Creator Partnerships at Twitter, managing a
large global team responsible for all of Twitter's creator relationships and business
lines. Nick was also part of the founding team at Niche, one of the first technology
platforms designed to help creators and influencers thrive and monetize on Instagram,
Vine, Twitter and Snap (Niche was acquired by Twitter in 2015).

Nick started his career as a corporate lawyer, is a long-time crypto enthusiast and
strong believer in decentralizing broken legacy systems.

● Stephanie Pereira (VP, Creator Success)- Stephanie Pereira is VP of Creator Success

at Rally and a community engagement expert with more than 15 years of experience
working at the intersection of arts, tech and business.

Before joining Rally, Stephanie served as Director of New Museum's NEW INC. There,
she co-founded the museum-led incubator’s Extended Reality (XR) accelerator, ONX
Studio. Prior to that, she was a senior leader at Kickstarter where she worked for over
six years, first as the inaugural Director of Arts, and ultimately as Director of Creator
Engagement where she oversaw strategic growth and management of a global
community of over 100K people. Stephanie has an MA in Arts Administration from the
School of the Art Institute of Chicago, and a BFA in Visual Arts from Mason Gross
School of the Arts at Rutgers University.

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● Chris Fortier (VP, Product)- Chris is Rally’s Vice President of Product and leads a
team of product managers, designers and analysts overseeing Rally’s capabilities,
strategic direction and user experience. Chris drives both the creator and fan
experience of Rally by directing his internal engineering teams and supporting the
Rally developer ecosystem.

Before joining Rally, Chris worked on Music for Twitch, the leading live streaming
service for creators. He oversaw the development of numerous creator-centric
products for Twitch. His most recent project was leading Soundtrack by Twitch, a
source of rights-cleared music for streamers that quickly delivered millions of hours of
music to the service each week. Chris was the first product hire for the Music vertical
and supported musicians on Twitch as they tripled their share of video consumed and
quintupled their share of revenue.

Prior to Twitch, Chris spent several years in the games industry at Electronic Arts
(Maxis) where he shipped the award winning The Sims Mobile as well as time with
TapZen (a successful exit to Kabam) and Zynga. Finally, Chris is a Chartered Financial
Analyst who also comes with an extensive background in finance with years in private
equity, mezzanine lending and portfolio management.

● Carol Chen (VP, Engineering)- Carol is VP of Engineering at Rally. She has been
working on Software development for more than 15 years. Prior to joining Rally, she
led the engineering team of Platform Ads and Content Ingestion in Pandora music.
She also has extensive experience working in e-commerce, digital coupons and
gaming.

● Johnny Tong (Head of Finance)- Johnny is Rally's Head of Finance and leads the
company's Accounting, Finance and People Operations.

Prior to joining Rally, Johnny was the Head of Treasury for Peet's Coffee for 6 years,
raising over 10+ billion in debt capital, managed all facets of working capital, and was
on the founding team that lunched Peet's in China. Prior to that, Johnny co-founded a
peer to peer consumer lending company where he raised capital, operated and exited.
Prior to that, Johnny has extensive experience in various functions in accounting and
finance for several technology companies in the SF Bay Area. Johnny started his

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 career in management consulting for 8 years, serving large Fortune 100 clients in
technology and financial services in M&A, accounting advisory and valuation. Johnny
graduated from the Haas School of Business at UC Berkeley and is an active CPA
licensed in California.

● Kurt Patat (Global Head of Communications, Social and Events)- A seasoned media
and technology communications leader, Kurt Patat is Global Head of Communications,
Social and Events for Rally. In this role, he serves as both a key spokesperson and
media contact while leading the strategy and execution of corporate communications,
media relations, social media and events.

Prior to joining Rally, Kurt was YouTube’s Global Head of Consumer and Entertainment
Communications. For nearly a decade, he led several teams across Viacom as Senior
Vice President/Head of Communications for Paramount Network and CMT, as well as
Vice President of Communications for MTV and Logo. He also served as AOL Head of
Consumer Communications.

Kurt has an affinity for the blockchain landscape and has helped build trust in the
network for creators, athletes, celebrities, and their fans through strong and
compelling press and community outreach.

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● Rob Collier (General Counsel)- An expert and industry innovator in cryptocurrency
and financial services law and compliance, Rob Collier is General Counsel for Rally. In
this role he leads all US and international legal and compliance matters for the social
token and NFT platform. Rob has over 15 years’ experience as in-house counsel,
focusing on corporate governance, corporate transactions, ethics, and financial
services regulatory compliance.

He previously served as Head of Consumer Product Legal Team, at Facebook

Financial (“Novi”) where he was responsible for managing the legal team for the
product and leadership divisions that lead Meta’s consumer cryptocurrency and
financial services initiatives across Meta, Instagram, Messenger, and WhatsApp. Prior
to Meta, Rob previously served as Associate General Counsel and Chief Compliance
Officer for EZCORP, Inc. (Nasdaq: EZPW), where he provided counsel on corporate
governance issues and managed the company's global regulatory and product
counsel teams in over 7 countries. EZCORP is a global consumer financial services
holding company and the 11th largest consumer lending institution in Texas.

Rob also served as Vice President, General Counsel and Chief Compliance Officer for
Noventis Payments, Inc., a venture capital backed payment processing company that
processed over $3 billion payments annually. Noventis was acquired by Wex, Inc. Rob
assisted Noventis in navigating the legal and regulatory challenges in the growth of
various mobile and fintech payment platforms, including Evolve Money, Tom Joyner
Reach Card, Walgreen’s Balance Card, Venmo, Currency Cloud, Transferwise,
eDeposit, Kurrenci, among other emerging payment platforms.

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6. Unite.io
6.1. Mission Statement
The mission of Unite.io is to revolutionize the interactions between creators and their
fanbase using blockchain technology in Asia, for Asia.

By harnessing the power of decentralized technology, creators and their communities can
unite to build their own independent digital economies. Built on the RLY network, Unite.io
targets to become the go-to name for creator economy platforms in Asia.

6.2. About Unite.io

In essence Unite.io is very similar to Rally.io. Both allow creators to mint creator coins, have
an NFT ecosystem and allow fans to trade both the NFTs and the creator coins. In practice
however, Unite.io and Rally.io have some key differences. They should also be considered
separate and independent from one another.

Whereas Rally.io focuses predominantly on the Western markets of the Americas, Australia
and Europe; Unite.io engages with the Asian markets specifically. The reason being that
Asian countries have vastly different cultures, languages and time zones than their Western
counterparts. This calls for a different approach, a team of people equipped with the
knowledge and experience applicable to these regions and a firm understanding of the
platforms that Asian creators use. For example, whereas Western countries favor Instagram,
Korea has Kakao and Japanese prefer Line. The team at Unite will place a large emphasis on
working with the internal dynamics on these individuals’ platforms to best cater to the
creators that use them on an active basis.

Unite.io will emphasize creator acquisition and working with the regulatory framework that is
unique to Asian countries. For example, markets such as Taiwan and the Philippines have a
crypto-friendly regulatory environment that allows for a faster and more aggressive rollout
than regions in Asia that are less crypto-friendly. At the same time, in some countries such
as Korea and Japan, both crypto and the creator economy are considerable which makes
them an important market to crack in order to promote $RLY adoption.

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The team at Unite.io is currently being expanded with new hires and aims to launch on
October the 18th 2021. The headquarters will be in Singapore. Although Unite.io will produce
PR content in numerous Asian languages including Chinese, Unite.io will not pursue the
creators of Mainland China nor will it be possible to bridge out to citizens of China. Crucially
however, the NFT ecosystem in China is very popular which provides opportunities for
Unite.io to expand in that regard.

6.3. Team
● Weiwei Geng (CEO)- Weiwei was co-founder of Rally and served as Managing
Director China at Gen.G, a leading esports organization with top teams in China, South
Korea, and the US. Previously, Weiwei was Executive Producer at Kabam from 2012 to
2017, overseeing the development and operation of several successful mobile games
produced in Kabam Beijing studio, generating over $100M yearly revenue in total.
Prior to Kabam, Weiwei was Producer at Joyport, a leading game developer and
publisher in Asia.

● Henry Foo (VP Product)- Henry was most recently lead PM on the Google Pay for
Business app, publicly launching the app and growing it to millions of merchants in
India. Previously, he led cross-functional product and dev teams at Kabam, launching
hit games published in over 100 countries worldwide.

● Matthew Xu (VP Engineering)-. Matthew is responsible for technical strategy and

engineering operations. Previously he worked as a lead engineer at IGG working on
various MMO titles. He’s been active in the development community in blockchain
technology since 2017.

● James Chan (Head of Partnership)- James Chan served as Head of Partnership for
Unite.io. Previously, he served at Ralph Lauren, Bottega Veneta and Rock Record
covered Asia Pacific. He's been working with top celebrities and influencers across
Asia for global campaigns and projects.

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● Di Chen (Head of Business Development)- Di served as head of business
development for Unite. Previously, Di has led the BD team at major technology
companies such as Gen.G, Unity, Kabam, and Kunlun since 2011 where he helped to
grow the business by working with prominent partners across multiple Asian markets
including Greater China, South Korea, Japan, Vietnam, Indonesia, Malaysia, and
Singapore.

● Sandy Wong (VP Finance)- Sandy joined Unite from Standard Chartered Bank, SC
Ventures and previously in the Global Private Bank leading the Client Acquisition
Program for 23 Markets in GCNA, ASEAN & South Asia and Africa & Middle East
Regions. She also worked in Royal Bank of Scotland and headed up the Business
Performance Management team for International Banking, Asia Pacific, covering 10
Asian Markets. Sandy brings a wealth of experience and expertise in Finance,
Compliance and HR areas to Unite.io.

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7. SuperLayer
7.1. Vision and Mission Statement
SuperLayer’s vision is to democratize opportunity and the ownership of the internet.
SuperLayer’s mission is to build a community of builders creating transformative Web3
experiences.

7.2. About SuperLayer

SuperLayer is a venture studio that invests in and partners with developers to build new
tokenized consumer applications on top of the RLY ecosystem. By creating a set of solutions
across economy design, token issuance, liquidity provision, smart contract development,
custody, compliance and payments that significantly simplify building and launching Web3
products, SuperLayer plans to help onboard a whole new generation of creators and
consumers into crypto. Leveraging the RLY protocol will be a crucial component for
SuperLayer success and complimentary for the RLY ecosystem. In essence, the more apps
built in the RLY protocol, the more the entire network benefits.

With respect to operating the venture studio and building startups, SuperLayer executes the
following five-step approach:

1) Start with an idea and flesh it out until there is clarity and conviction on the
opportunity, go-to-market and skill set needed to lead the product.
2) Mine our collective networks to find a “Founding Project Manager” to run the project
as a co-founder and product manager.
3) Finalize scope and direction with the founding PM and fund the seed round.
4) Work together to take the project from initial concept to private alpha and public beta.
5) Take the project out to raise a Series A and/or token listing for external funding.

With respect to capital structure, SuperLayer operates as a general/limited partner structure

that will enable the aggregation of capital from multiple sources, similar to a traditional
venture capital model. The main difference however between a venture capital model and a
venture studio is that rather than investing in externally formed companies, SuperLayer
incubates and launches its own ideas, infusing it with capital, talent and SuperLayer
expertise and resources before executing a formal external fundraise.

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SuperLayer is initially funded via a 20M $USDC loan from the RLY community and up to a
25M $USDC investment for the venture fund to deploy into startups. The RLY community
will receive interest on the loan and a return on invested capital via the fund. The credit
facility will be drawn in tranches of 5M $USDC. Each tranche will be released upon request
by Superlayer. The request will be made to the Community Treasury Manager and will be
payable within five days of receipt.

In addition to the investment from the RLY community, SuperLayer also raised a smaller
amount from investors including Marc Andreessen, Chris Dixon, Paris Hilton, Richard Ma,
Packy McCormick, Joe Montana, Brit Morin, Nas, Michael Ovitz, Anthony Pompliano, Lenny
Ratchitsky, Carter Reum, and Gary Vaynerchuk.

The SuperLayer project launched publicly October 28th, 2021 (CoinDesk, TechCrunch,
CoinTelegraph, BusinessWire, SuperLayer Medium Post) and will be announcing its first
projects in Q4 2021. More information can be found at superlayer.io.

7.3. Team
● Kevin Chou (Managing Partner)- Kevin has successfully founded and launched four
projects (Rally, Forte, Gen.G, and Kabam) with valuations for three of the four
estimated at more than $1B. He's been honored by Fortune in 40 under 40, CNN in
Smartest People in Tech, Business Insider's Silicon Valley Top 100, and CoinTelegraph
Top 100.

● Mahesh Vellanki (Managing Partner)- Mahesh Vellanki served as Co-Founder and

Head of Growth for Rally. Previously, he served as a venture capitalist at Redpoint
Ventures from 2012 through 2018 where he led investments in the consumer internet
space. He’s been honored by Forbes 30 Under 30 and LinkedIn Top Voices.

● Gary Coover (Chief Operating Officer)- Gary helped architect, launch and scale
Samsung Next (software innovation arm of Samsung Electronics), specifically building
venture and incubation entities across the globe, and most recently serving as the GM
and Operating MD for the Next Ventures team.

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● Saad Rizvi (Chief Product Officer)- Saad helped design and lead product teams at
Facebook’s New Product Experimentation Group. Previously he co-founded the
govtech company Delivery Associates and several consumer product companies
backed by YCombinator.

● Ira Lam (General Counsel)- Ira served as General Counsel of Rally, Forte and Kabam,
where she led global legal operations, regulatory strategy, strategic partnerships,
product design and compliance, M&A, and capital financing.

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8. RLY Ecosystem DAO
8.1. Mission Statement
Foster a rich organic community-driven ecosystem of developers, creators, businesses, and
service providers for the RLY Network ecosystem.

8.2. About RLY Ecosystem DAO

As of early December 2021, the RLY Ecosystem DAO has not yet launched publicly, however
an initial plan has been developed and proposed in the RLY Forum. The RLY Ecosystem DAO
is a decentralized, autonomous organization run directly by $RLY token holders to govern
and distribute a periodically refreshed budget for the benefit of the RLY network. These
annual grants are provided by the Association and the first grant is a total of 20 million $RLY
and 2 million $USDC and it is the behest of the token holders in terms of how they wish to
implement these funds.

The DAO can provide grants to fund projects, companies or individuals to build on top of the
RLY ecosystem. These include:

● Specific Projects: Build on $RLY, support existing projects for specific purposes, etc.
● Community (Education): Get grants to build elements of the $RLY ecosystem that will
help current and future members.
● Product Launches: Applications of each launch must have prototyped a feature-full
product. The DAO would provide a ~$50K equity-free contribution based on specific
milestones for your application.
● Events and Hackathons: Sponsoring events and hackathons for people to learn about
$RLY and build in the $RLY ecosystem.
● Bounties: Funding $RLY ecosystem specific bounties.

The DAO has a number of operating goals that will adapt over time but currently include
onboarding new users (as measured by wallet growth), optimizing for speed and
experimentation and finding the right sized governance. There is an understanding that
these operating goals take time to mature and develop but we will be monitoring these
elements closely. The DAO will be using DAOHaus for on-chain distribution of grants funding
for this first version. Many existing DAOs utilize the Moloch DAO framework and it will allow
the RLY ecosystem to interact with and access other DAOs in the Web3 space.

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8.3. Governance
As of December 2021, complete governance infrastructure is in process of being built, but
has not been finalized and a number of options are being considered. The ambition is that all
$RLY token holders should experience a frictionless ability to participate in the DAO and it
serves to experiment with which method of decision-making is faster and more efficient via
token voting. With this in mind following options are being considered:

● Committee Governance: Vote on an initial committee of ~8 members: 1 lead and 7

reviewers.
○ Reviewers process applications and operate a 4 of 7 multi-sig to disburse funds
to grantees.
○ Members can be replaced if they are not able to meet the expectations of the
governance process.
● Community Token Holder Governance: Use a token holder governance process where
the community votes on Snapshot with their $RLY holdings to approve grants. The
funds are disbursed by the Ecosystem Grants DAO multisig holders.
● A hybrid approach: Utilize a mix of Committee Governance and Community Token
Holder Governance depending on the size of the grant request.

There are also proposed thresholds for grants funding and review:

● Micro Grants - $1-$5,000 ($RLY Equivalent): 3/7 reviewers approved.

● Rapid Grants - $5k-$50k ($RLY Equivalent): 5/7 reviewers approved.
● Community Grants - $50k-$500K ($RLY Equivalent): initial application to a form,
posting the proposal on governance forum, community vote to approve.

The grant recipients are organized into four 3-month funding rounds. Applications will be
accepted on a rolling basis and any grants disbursed during a given 3-month period become
part of the corresponding round. Round 1 will be for three months from the day the grant's
DAO proposal has been approved. For example, if the proposal is approved on 11/1/2021,
Round 1 of the grants program will be from 11/1/2021 to 2/1/2022 and Round 2 of the grants
program will be from 2/2/2022 to 5/2/2022. As a condition of each grant, quarterly reports
from each grantee will be required until grant milestones are completed. At the start of the
next season, the report of what happened the previous season will be shared and will set
the stage for the next season.

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8.4. Quadratic Voting
An important concept to note for RLY Ecosystem DAO governance is the concept of Voting
Power. The concept of voting power is not new however (also known as quadratic voting)
and it has been written about extensively. You can find a link to an article on quadratic
voting written by Vitalik Buterin here.

For the DAO, Voting Power is determined by taking the square root of a user’s
Ethereum-mainnet $RLY holdings (in wallet and staked) at a specified "block" per proposal.
This block is usually set to be at, or just before the time the proposal goes live.

What does it look like in practice? In short, your n’th unit of voting power costs you $n. For
example, your first vote costs you 1 $RLY, your second 2 $RLY, your third 3 $RLY, etc. The
effect hereof is immediate, those with large token holdings are adversely affected by this
mechanism. What makes this desirable is the fact that it encourages smaller token holders
to voice their opinion and makes it much more difficult for large token holders to organize
and push through proposals that are not desired.

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9. Community Built Additions
to the Rally.io Project
In addition to the five entities that form the RLY ecosystem, there are several additions built
by the active developer community of Rally.io that provide additional functionality and Web2
interoperability. Below is an introduction to some of the earliest extensions to the Rally.io
platform; more will be released in the months and years to come.

Bonfire

The community passed a vote for a 500k $RLY developer grant for Bonfire on 27th of June
2021. Bonfire is a platform that enables Rally.io creators to build branded reward sites
powered by their creator coin (and NFTs in the near future). The suite of tools facilitated by
Bonfire allow for new ways for creators to distribute coins to fans, and reward coin holders
with customizable benefits and rewards. The goal is to build flexible and powerful tools that
unlock new creator coin use cases, allowing creators to spend less time doing manual work
and more time experimenting and being creative. Here is a demo for the minimum viable
product that was recently presented by Matt Alston and Melissa Zhang.

RallyBase

RallyBase is a website that offers an overview of all things creator. It provides an overview of
all creators currently live in the Rally.io ecosystem. Users can easily find live campaigns,
bounties, coin price movements, donations and if creators are currently live on their Web2
platforms. Users can request more functionalities by visiting the website or reaching out to
the builders via Twitter. RallyBook is another application that provides tools for analyzing
creator coins and reward issuance.

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Rally Discord Bot

In addition, many creators communicate with their community through Discord or stream
through Twitch. This is why the team at Icarus have built a friendly Rally Discord Bot that
allows users to donate or send their respective creator coins within the Discord
environment. The bot also allows for the checking of balances in order to enable gated
content and channels to function without the creator having to do the complex setup work.
For Twitch streamers, the team has built Stream Elements and Streamlabs price ticker, goal,
alerts overlays and OBS Live integration. Finally, for ClubHouse, the team has built a Rally
Paid Rooms feature that allows creators to set a minimum creator coin ownership amount for
ClubHouse Room entrance.

If you’re a developer, creator or just generally curious to learn more, please visit the Rally
Labs environment where you can learn more about the Rally API, how to work with the Rally
tools and features, and learn how to use the web based tools such as Historical Price Data
and Rally Live Alerts. If you have a cool idea, feel free to pitch it to the community and apply
for a Rally Community Treasury Grant to make your project a reality.

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10. $RLY Tokenomics:
Ecosystem, Applications &
Association
Tokenomics play a fundamentally important role in the success or failure of a crypto project.
In essence, good tokenomics align the incentives of all participants of a token economy.
These incentives are built into the protocol and will function as such in perpetuity thereby
guaranteeing the protocol’s future.

There are several reasons why tokenomics are important. For example, sound tokenomics
draw in users because the incentives mechanisms in place are balanced. They do not favor
miners over users, large owners over small owners, and do not disproportionately reward
early participants over later ones. Instead each participant is incentivized in such a way that
propagates the protocol and is not at odds with other participants’ incentives.

Tokenomics also have a hand in dictating the long-term prospects of a blockchain project.
For example, disproportionate inflation or deflation of tokens can erode the intrinsic value or
underlying use case. Token distribution at launch and over time are also important
components of tokenomics. The token distribution plays a key role in keeping all members of
the community engaged and incentivized over time.

The goal of the RLY ecosystem is to enable the building tokenomics that feature all of the
above, but also reward participants and fan loyalty, increase velocity2, lower barriers to
entry, decrease complexity where possible and make sure that the overall ecosystem is one
that attracts value rather than seen as a vehicle for extracting value. In order to do so,
projects such as Bitcoin and Ethereum have been analyzed, and key learnings taken from
them that we see as solid foundations for a Web3 project. More contemporary concepts
have also been incorporated, such as Token Bonding Curves (more on that later) that enable
issues to be tackled that would have otherwise made sidechain tokens, including creator
coins, infeasible. In what follows, we’ll engage with all tokenomics related concepts and
break them down to demonstrate how they contribute to overall healthy tokenomics.

2
The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money
moves from one entity to another. It also refers to how much a unit of currency is used in a given period of time. Higher velocities tend to
be a good indicator for a healthy economy. It means that participants are active participants.

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10.1. RLY Ecosystem Tokenomics

10.1.1. Budget Allocation

Each project has developed a budget that will carry it to the end of 2022. The overall budget
is 345M $RLY and 86M $USDC, which is aggregated from the budget requests of each of
the five projects. The total budgets requested from each project are listed below:

$RLY
$RLY
Rally Asia $RLY Network
Rally.io Ecosystem SuperLayer Total
Project Association
DAO
in millions in millions in millions in millions in millions in millions
Team 50.0 35.0 32.0 13.0 35.0 165.0
Marketing Initiatives 90.0 25.0 13.0 2.0 12.0 142.0
Operations 10.0 10.0 10.0 5.0 3.0 38.0
Total 150.0 70.0 55.0 20.0 50.0 345.0

$USDC
$RLY
Rally Asia $RLY Network
Rally.io Ecosystem Total
Project Association
DAO
in millions in millions in millions in millions in millions
Team 36.0 10.6 4.5 1.3 52.4
Marketing Initiatives 18.0 3.0 1.0 0.2 22.2
Operations 6.0 3.9 1.0 0.5 11.4
Total 60.0 17.5 6.5 2.0 86.0

(Source)

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Rally.io is the flagship application with the largest of the five teams, and with the continued
development efforts of Rally.io building parts of the core application infrastructure that both
Unite.io and SuperLayer will leverage, Rally.io will receive the largest budget allocation in
terms of both $USDC and $RLY.

This is followed by Unite.io, through which expansion of the RLY network will occur
throughout the greater Asia market.

Finally, the budgets for the RLY Network Association & $RLY Ecosystem DAO will cover the
operation costs plus the hiring and onboarding of new team members and experts to
achieve their respective end goals.

For SuperLayer, the RLY community will have the opportunity to participate in up to 25M
$USDC in new venture investments that SuperLayer leads. These investments will be in
projects and companies that will build on the RLY ecosystem focused on network and
community growth initiatives.

Additionally, the RLY community will have the opportunity to provide a 20M $USDC credit
facility to SuperLayer 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. The credit facility will be drawn
in tranches of 5M $USDC with the first tranche released to SuperLayer within five (5) days
from the date of approval of the proposal. Each subsequent tranche will be released upon
request by SuperLayer. The request will be made to the Community Treasury Manager and
will be payable within five (5) days of receipt.

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10.1.2. Release Schedule
The budgets will be released in five (5) tranches as follow:

Tranche 1

Upon approval of the proposal, the first tranche will be released to each entity within five (5)
days of approval in the amounts of:

$USDC* $RLY
in millions in millions
Rally.io 20.0 50.0
Rally Asia Project 6.0 24.0
$RLY Network Association 6.5 55.0
$RLY Ecosystem DAO 2.0 20.0
SuperLayer See Section III. B. See Section III. B.

(Source)

Tranche 2-5

Rally.io and Unite.io will submit requests for additional tranches on a quarterly basis by the
submission deadline. Each project will provide a detailed forecast for the following quarter,
outlining the funding request for the quarterly tranche and most recent KPIs as requested by
the RLY Network Association. The Association will have thirty (30) days from submission
deadline to review and discuss any requests. The Association will retain discretion to
approve in full, or in part, the amount of the funding request, based on a funding approval
policy determined and set by the Association. The aggregate funding for any project will not
exceed its approved budget outlined above. Upon approval, the tranches will be funded
within fifteen (15) days based on the funding schedule below:

Request Tranche Review Tranche

Submission and Approval Disbursement
Tranche 2 10/31/2021 11/30/2021 12/15/2021
Tranche 3 1/31/2022 3/2/2022 3/17/2022
Tranche 4 4/30/2022 5/30/2022 6/14/2022
Tranche 5 7/31/2022 8/30/2022 9/14/2022

(Source)

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Distribution of funds will be managed by the Community Treasury Manager. The Community
Treasury Manager will determine the split between $USDC and $RLY to be distributed at
each tranche based on the $USDC available in the community treasury.

Volume restrictions

The granted $RLY will be subject to transfer volume restrictions as determined and set by
the RLY Network Association.

Reporting

Each of the Rally.io and Unite.io 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 Association to demonstrate compliance
with the volume restrictions. Reporting will follow the schedule below:

Reporting
Submission
2021 2/15/2022
Q1'22 5/1/52022
Q2'22 8/15/2022
Q3'22 11/15/2022
Q4'22 2/15/2023

(Source)

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10.1.3. Ecosystem Token Distribution
A maximum supply of 15 billion $RLY tokens has been minted at genesis (October 15, 2020)
and will be released over the course of 8 years. The token address can be found here. At the
end of the 8 years the tokens will have been allocated in the following manner:

Seed investors: 15.05%, with a 4-year vesting period and 12-month lock-up, cannot vote in
first year. These tokens will be released over the first 4 years.

Team: 13.95%, with a 4-year vesting period and 12-month lock-up, cannot vote in first year.
These tokens will be released over the first 4 years.

Advisors: 0.17%, no vesting period or lock-up, free to vote. Advisors services are capped at
12 months and the total payout to advisors will not exceed 20M $RLY. These tokens will be
released over the first year.

Side Chain Operations: 1%. There are various operations that are transacted on the RLY
ecosystem side chain. These transactions must also be performed on the main net. On a
periodic basis, a tranche of $RLY tokens is required to be transferred for these transactions.
In order to calculate this number, a three-month period was analyzed and subsequent
quarters forecasted in order to calculate the costs moving forward. Taking this calculation
into consideration, 10 million $RLY tokens have been allocated for the next three to four
months of future transactions. This is an ongoing activity and is based on actual
transactions occurring on the protocols. What should be noted however is that this is a
temporary measure as we are currently building the architecture required to make the side
chain operations obsolete. This is an ongoing process of which the results, once completed,
will be communicated to the community. In turn, it will affect the token distribution
percentages.

Community: RLY Network Rewards: 49.78%. Network rewards will be distributed to eligible
applications for their contributions to the RLY network no fewer than 8 years.

Community: Treasury, Developers, Partners, LP and more : (20.05%). These tokens will be
made available linearly throughout the 8-year release schedule.

The motivations behind the token release schedule are as follows: Firstly, a linear release
schedule has been chosen for all components. A linear release schedule is much easier to
work with, understand and critique from a community members’ perspective. The fact that a
linear schedule could reward early adopters more than those who discover RLY at a later
date because these early adopters would share the Rally Weekly Rewards with fewer people

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has been considered. However, alternative release schedules have notable downsides such
as disincentivizing these early adopters to remain participants in the RLY ecosystem.

Community distribution allocations are 8 years, whilst founding team, seed, advisor and side
chain operations span over 1-4 years. The reasoning behind this is simple, given that the
seed investors and team are responsible for helping to get the RLY ecosystem and initial
projects launched and provide the initial time, capital and effort to enable the RLY
ecosystem to continue its growth, these tokens will be released in the first half of the token
release schedule. Distributing the token allocation for the founding parties in the first four
years effectively puts a definitive end point on the founding team’s contributions and
reiterates the importance of progressive decentralization.

Contemporary contributors to and participants in the RLY ecosystem who acquire $RLY
have a vested interest to help steer the platform as they believe in the long-term prospects
thereof. This desire to help govern is especially strong in the earlier stages of any project,
including those incubated by Superlayer. For Superlayer in particular, project seed investors
are identified and accepted as they are well-connected, experienced industry veterans with
track records of success. Their input can be of tremendous support for any project and for
the RLY protocol as a whole.

Certain guardrails have been put in place to address common concerns of token-based
projects. One such concern is that larger holders of a native token sell off their holdings in
the early stages of the project. For the RLY protocol founding team, a 4-year vesting3 and
12-month lock-up period4 reduces this issue. Furthermore, in November 2021 the founding
team and early investors voluntarily agreed to increase the lockup period by a further 6
months increasing the total lock-up period to 18 months.

Another concern raised on any projects based on governance tokens is that of outsized and
unbalanced voting power held by a minority. To respond to this concern, quadratic voting is
implemented on $RLY holder voting to minimize outsized control over governance by larger
holders. In addition, there is a 1-year voting restriction coinciding with the lock-up for the
founding team, which should sufficiently enable a sizable number of community participants
to be engaged and participatory prior to such lock-up release.

3
The vesting period is the period of time before the tokens in an employee payment plan are unconditionally owned by an employee. If that person's
employment terminates before the end of the vesting period, Rally can buy back the tokens at the original price.

4
A lock-up period is a window of time when the token recipients are not allowed to redeem or sell their tokens.

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Some community members may object to the $RLY token’s level of inflation. This point of
view has been considered, however communities grow at an exponential rate and the
tokenomics should reflect that. Given the fact that a large number of communities growing
at an exponential rate will be engaged with, the potential demand for the $RLY token
underlying the creator communities, would be so high that the price appreciation of the
$RLY tokens would entice people to speculate on the token. This is an undesirable outcome;
instead $RLY should be an entry-point to the creator economy, a governance token to be
used to vote on changes to the RLY protocols, and a means of engaging with other creator
communities, the RLY ecosystem and as a reward mechanism. The goal of the RLY protocol
is to encourage and incentivize use and engagement.

The community itself will be entitled to just under 70% of the total token supply. Herein
49.78% goes directly to RLY Network Rewards. The other 20.05% of the total token
allocation, which is attributed to the community treasury, developers, partners, liquidity
providers, etc. are broken down as follows:

● Liquidity Mining Program (3.125% overall supply)

● Advisors and Future Collaborators (4.125% overall supply)
● Developer Ecosystem and Technical Partnerships (5.825% overall supply)
● Creator, Brand and Community Partnerships (7.225% overall supply)

Note that all of the above are completely at the behest of the community. $RLY token
holders vote on how, when and to whom these tokens are allocated.

The final 0.17% of the tokens allocated go to a group of advisors that were on-boarded for
building the community and growing the creator base. Their length of service is for 12
months with total pay-out that will not exceed 20 million $RLY.

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10.2. RLY Application Tokenomics: Rally.io and Unite.io

10.2.1. Transactions
RLY’s core principle for providing a pleasant custodial experience for the platform’s users is
reflected in the fact that transactions happen free of charge. A dedicated PoA sidechain
hosted by our partners at Forte also enables users to send and receive these transactions
without having to worry about regulations and setting up wallets; it’s similar to the Web2
experience that millions of users are comfortable with.

The result hereof is two-fold: on the one hand, the aim is to lower the barriers to entry and
adoption by making the platform accessible, familiar in setup and above all, free from the
high fees that platforms typically charge. This will draw in new crypto-users as well as
creators. On the other hand, this experience would remain one that is secure and compliant
by staying in line with regulatory and legal frameworks. This results in new users being able
to keep participating in the creator coin economies because they feel safe to do so. New
and existing creators will be enticed to bring their unique economies to the RLY ecosystem
which will enable them to experiment with the unique business models of Web3.

As previously discussed, $RLY tokens are available on numerous centralized and

decentralized exchanges in the crypto space. Those tokens can be bought freely and in turn
used to vote on proposals, provide liquidity or purchase creator coins. For those seeking to
purchase creator coins, they can access a bridge-in smart contract that allows users to
effortlessly bridge their ERC20 $RLY tokens to the Forte sidechain (walkthrough). All tokens
bridged in through this smart contract are stored 1-on-1 meaning that when users wish to
bridge-out at a later date, the ERC20 $RLY tokens are available. Note that bridging out
requires the user to perform KYC and is limited to 50,000 $RLY per user per day, with a
global system maximum of 1,000,000 $RLY per day (walkthrough).

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10.2.2. Buying and Selling Creator Coins
Buying creator coins requires a user to set up an account on either the Rally.io or Unite.io
website. The user can then visit the “trade” section of their account and participate in the
creator coin economy. Users have three options to purchase creator coins: First, the user
can use a credit or debit card (with a $200 limit per transaction) to purchase a creator coin
directly. Second, the user can exchange Bitcoin ($BTC), Ethereum ($ETH), USDC ($USDC),
Dai ($DAI), Litecoin ($LTC), Bitcoin Cash ($BCC) for creator coins; this is not limited. Third,
$RLY that is bridged in can also be converted to creator coins, there is no limit on this
method either.

Exchanging creator coins for $RLY may be subject to a fee depending on the settings
selected by the creator. More specifically, the creators themselves can decide whether or
not selling a particular creator coin brings with it a percentage fee and what percentage this
will be.

Alternatively a fee can be based on the size of the transaction relative to the total circulating
supply. For example, if the creator turns on this particular fee mechanism, and someone tries
to sell 5% of the total supply in one transaction, then the fee for that transaction is 5%. If
someone tries to sell 0.1% of the total supply, the transaction fee is 0.1%.

The motivation behind a creator coin fee can range from the discouragement of speculation
to providing creators with an additional form of income which, if the creator chooses, can be
redistributed to the community or added to that community’s treasury.

10.2.3. Flow Controls

In order to stem further speculation and instead promote utility, there is a feature called
“Flow Controls”. These flow controls govern the amount of coins that can be converted to
$RLY or transferred to other users. Transferring to a creator however is excluded from the
flow controls.

In terms of how the flow controls function; they are modelled on token bucket algorithms5
and are designed to enforce per user, per coin, rate limits while allowing for bursts in activity.
Users will notice these flow controls in the Convert, Redeem, and Send interfaces. In each,
users will see an "up to" amount that will be less than their total balance when they are
subject to limits applied by the flow control system.

5
For more information on token buckets, please visit: https://en.wikipedia.org/wiki/Token_bucket

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Concrete the flow controls include:

● A configurable maximum of 5% of the total supply of a creator coin.

● Accrual towards that maximum allowance over 30 days.

At any given time, a user has an allowance limiting the amount of a creator coin that they
can sell or transfer based on the above rules. Each time a sale or transfer is completed, that
amount is deducted from the user's available allowance for that coin and accrual up to the
maximum allowance continues. Additionally, there are configurable exemptions that allow for
unrestricted transfers to and from specific addresses for each coin. These exemptions are
designed to allow commerce and donations to happen without restriction.

The flow control calculation tracks the last time you (a creator or fan) performed an action
and what your allowance was at the time of that action. When you return in the future to
perform another action, your current allowance is calculated based on the time that has
passed since your last action, your allowance at that time, and the current circulating supply
of coins. This allowance is what the flow control will allow you to send or convert at this
time. As previously described, there are instances where exemptions, such as “sends” to
creators in their own coin, are not subject to this allowance.

In order to make the above a little more concrete, here are some examples of how flow
controls effect creator coins:

Allowance Following Current Circulating

Days Since Last Action Current Allowance
Last Action Supply
10 0 20,000 333
10 2,000 20,000 1,000
10 2,000 100,000 3,666
20 2,000 100,000 5,000
20 2,000 200,000 8,666
30+ (your flow controls 5% of current
Any Any
reset after 30 days) circulating supply

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To reiterate, our goal with flow controls is to stimulate adoption and to discourage
speculation and market manipulation by large token holders. Creator fees and flow controls
are a step in the right direction in this regard, but do not represent an end product, the
simple reason being that it’s very difficult to find the right balance between freedom &
restriction, especially considering the fact that predicting the development of creator coin
and the role speculation plays over longer periods of time is not an easy task. We encourage
the community to actively take part in this discussion; you can follow some of the more
recent discussions here.

10.2.4. Token Bonding Curves v1

A potential pitfall of creator coins is the fact that the trading and the underlying liquidity of
the market are not capable of absorbing large market entries or exists. If trading were purely
a maker-taker system, it would be very difficult for some participants to trade in and out of
creator coin markets without slippage6 or simply not being able to find a counterparty for the
creator tokens, at a given price, in the desired quantities.

More concretely, if a user wanted to exchange a large number of $RLY tokens for creator
coins, that would be difficult because chances are, very few people want to sell them at that
moment in time. This means that if a user really wanted an order to go through, they would
end up paying a lot more or receiving a lot less. The alternative is waiting a long time for the
order to fill which is also not desirable. Therefore, Token Bonding Curves (TBCs) have been
introduced. These TBCs allow anyone, at any time, to make an order at any size they want,
and the order can be executed right away.

In the simplest terms, TBCs are algorithms running on smart contracts that know how many
creator coins to issue or absorb at what price. So, when a user buys or sells creator coins,
they are interacting with that algorithm. The upside to this is that liquidity is much higher,
prices are predictable, and users can trade large volumes without significantly upsetting an
orderbook. At the same time Token Bonding Curves are adjustable. This is desirable
because, let’s say that at a certain volume, price impact is still too high, the algorithm can be
adjusted to help with that. TBCs therefore allow projects to experiment with “the right
algorithmic structure” that guarantees liquidity, predictable pricing at any volume and a level
of customization that enables creators and the RLY teams to explore various TBC designs.

6
Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. It can also occur
when a large order is executed but there isn't enough volume at the chosen price to maintain the current bid/ask spread.

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The smart contract that enables the TBC features an Automated Market Maker. This is
essentially an automated counter party to anyone interested in buying or selling a creator
coin. The relationship between the price and supply that governs the AMM is established
through a pricing curve similar to:

Note that, at all times, the liquidity pool is fully funded in accordance with the pricing curve.
All funds used to purchase creator coins and all proceeds from sales of creator coins come
and go directly from the liquidity pool as trades are executed with the automated market
maker.

In practice, when a fan wants to buy one of their favorite creator’s coins, their funds are
transferred to the smart contract and a number of coins determined by the pricing curve are
minted. And when the fan is ready to sell those coins, they are simply burned, and funds are
released from the smart contract according to the pricing curve. An important distinction
between this TBC and an Automated Market Maker like Uniswap is that the TBC governs the
entirety of the creator coin supply as opposed to having users create individual markets
which require liquidity providers. The TBC essentially requires no dedicated liquidity
providers and every creator automatically has their own market economy on the Rally.io or
Unite.io platforms.

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The launch configuration of the TBC is designed in such a way that it mimics the adoption
s-curve. Please note that the ‘Price’ is subject to change due to the fact that the price of the
$RLY token has an effect on the price of a creator token.

(Source)

Herein the initial segment of the curve labeled ‘A’ effectively represents a supply floor. Upon
instantiation of a new creator coin, the first 50,000 coins are minted with a small amount of
liquidity. These coins go to the corresponding creator and ensure that they have the ability
to own a large percentage of the creator coin supply at all times, with the intention of
motivating creators to behave in ways consistent with the long term value of their coin
economy. While the continuous liquidity properties of the pricing curve hold for this
segment, the price approaches zero very quickly and the associated liquidity pool is small.

As we progress into section ‘B’, the slope should gradually increase. At this stage, the
liquidity pool begins to build, and leveraging the automated market maker to buy and sell
quantities of creator coins without quickly dropping below the effective supply floor is now
possible. Additionally, the gradual build of the liquidity pool creates an opportunity for early
adopters to acquire a meaningful share of their favorite creator’s coins for a relatively
modest price.

Within segment ‘C’, we see our largest slope increases. This curve is designed with the
intention of arriving in this segment when there is a similar amount of activity in the new
tokenized economy that our first batch of creators were typically seeing on an annual basis
in their existing economies. At this point, price and liquidity increase or decrease rapidly in

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response to demand and the relative volatility creates opportunities for interesting
interactions around creator coins and the digital assets they support.

Lastly, in segment ‘D’ there is a leveling off of price increases and hit our effective supply
cap of 210,000 coins. The price limitations at the high end of the curve should help
discourage unchecked speculation and limit the coin supply to levels consistent with
expectations around appropriate economic interactions between our initial cohort of
creators and their fans

A common concern raised is how unfamiliar a system like this is for the general public. While
some of these concepts are familiar in the financial world and have been more recently
explored with on-chain implementations in the decentralized finance world, they look a bit
unfamiliar to general consumer audiences who are a core user base for applications built on
the RLY protocol. That lack of familiarity could translate to skepticism about the fairness or
reliability of the system. A key component of the success of the RLY ecosystem is providing
continued education and clarity for ecosystem participants and ensuring that the
functioning of these markets and their underlying liquidity pools are as transparent as
possible.

10.2.5. Token Bonding Curves v2

Because there’s no way to know exactly how these creator economies will operate, it makes
defining the perfect curve a priori nearly impossible. In honor of that discussion, Delphi
Digital was engaged to examine the protocol TBCs and issue a report regarding potential
improvements that can be made, especially considering creator economies with millions of
users. Their report can be found here and the discussion regarding the improvements can
be found here.

In May 2021, a linear token bonding curve was introduced in order to support larger coin
holder communities, larger single-transaction purchases, and fractional liquidity pools.
Based on the positive feedback received from creators and users, the V2 token bonding
curve is now the default TBC, however the first iteration of the token bonding curve is still
available for any creator who would like to opt into that design.

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Below is an illustrative example of the V2 TBC:

(Source)

The above example shows the following parameters for a creator coin economy:

● During genesis, 5M creator coins were minted against negligible (0) $RLY, as
visible below.
● During pre-sale, 2M creator coins were sold at a fixed price of 1 $RLY per
creator coin, locking in 2M $RLY to the curve’s reserve pool.
● The exchange pricing function starts at 7M creator coin supply and 1 $RLY per
creator coin and concludes at 21M creator coins with a price of 28.7 $RLY per
creator coin, locking in a target of 210M $RLY in the curve’s reserve pool.

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 Version 2

Shape of the TBC Linear

Genesis amount 5M (24%)
Total token supply 21M
Total $RLY backing possible 210M
Starting price 1% current price of $RLY
Max $RLY / creator coin ~21 $RLY per creator coin

● 50k creator coins unlock immediately

● 10% of supply unlocks after a 6 month cliff
● Additional 3% of supply unlocks each month
through the end of year 3
● All coins unlocked in the genesis supply will be
Vesting period of genesis tokens subject to flow controls
● 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 5M coins in the
genesis supply, a creator must garner enough
support for 10M+ coins in circulation)

Based on the performance of the initial creator coins on the V2 TBC, in August 2021, a
proposal was introduced and approved updating the vesting schedule of a creator’s genesis
tokens. To see the Forum discussion and the approved changes, go here, and for the
Snapshot vote that approved the adjusted schedule, go here.

Please note: this updated vesting schedule has not yet been implemented.

10.2.6. Community Activity Rewards

Community Activity Rewards (CAR), also known as Rally Weekly Rewards, are an incentive
designed to reward creator communities that actively participate in Rally.io and Unite.io
ecosystems. Communities in turn earn rewards based on activity involving their creator coin.
When rewards are earned by a community, $RLY will be awarded to the community. For
each community that earns rewards, each participant in a community will receive a share of
$RLY proportional to their holdings of that community’s coin. To help you conceptualize this,
this mechanism is comparable to staking your creator coin and being rewarded for it when
your community grows.

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The issuance of CAR is determined by two key factors. Firstly, when new creators are added
to Rally.io and Unite.io, more $RLY will be added to the rewards pool for weekly
distributions. For the first 100 creators, each time a creator is launched and live on Rally.io or
Unite.io, the CAR will increase by 1,000 $RLY per day. When creators 101-200 are launched
on Rally.io and Unite.io, each launched creator will increase the rewards by 900 $RLY per
day. This trend will continue until there are 1,000 creators on board. From there, each
additional 100 creators will reduce the additional rewards slightly until we reach 10,000
launched creators with a pool of 1,000,000 $RLY being distributed for CAR daily. This may
be difficult to conceptualize, to help here is a table summarizing the information:

Daily RLY Rewards vs Creator Count Chart

# of Added RLY per Total RLY per Day, All Total Daily RLY
Starting Creator Count # of Creators Live
Day, per Creator Creators this Tranche Rewards
1 100 1,000 100,000 100,000
101 200 900 90,000 190,000
201 300 800 80,000 270,000
301 400 700 70,000 340,000
401 500 600 60,000 400,000
501 600 500 50,000 450,000
601 700 400 40,000 490,000
701 800 300 30,000 520,000
801 900 200 20,000 540,000
901 1,000 100 10,000 550,000
1,001 2,000 90 90,000 640,000
2,001 3,000 80 80,000 720,000
3,001 4,000 70 70,000 790,000
4,001 5,000 60 60,000 850,000
5,001 6,000 50 50,000 90,000
6,001 7,000 40 40,000 940,000
7,001 8,000 30 30,000 970,000
8,001 9,000 20 20,000 990,000
9,001 10,000 10 10,000 1,000,000
10,001 10001+ 0 0 1,000,000

Total 1,000,000

(Source)

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What should be noted is that there is continuous innovation in relation to the CAR program
by allowing community members to initiate proposals. One such proposal encapsulated the
ability to change the current rate of the CAR schedule (see above) by 1x-4x in order to find
the right level to reward active participation and usage with new creators being added to the
network. You can read more on this proposal here.

Rewards are calculated per community based on the difference between the total number of
underlying $RLY backing their owned creator coins, and an hourly average of the total
number of underlying $RLY backing their owned creator coins over the last 4 weeks. If a
community has more underlying $RLY in the current hour than their previous 4 week hourly
average, the square root of the amount of $RLY they have above their previous average will
be added to square root of the total of ALL individual communities with $RLY above their 4
week hourly average, and each community will be awarded proportionally to their
contribution to the overall $RLY holdings increase.

The calculation is based on a moving average to minimize any spikes or dips in creator coin
ownership. The square root operation helps shift some of the rewards to smaller creators
who will typically have lower base levels of $RLY backing them. Below are some example
creators and how their rewards would be calculated in a system with 5 creators granting
1,000 $RLY per day per creator, or approximately 208 $RLY per hour (5 * 1000 / 24).

Creator Coin Community Rewards Calculations

Avg. Hourly Current Hour ✓ $RLY Reward $RLY

Creator
$RLY $RLY Balance Share % Reward
Upward Trending Creator Arthur 1,375 2,500 34 59 123
New Creator Bertha 667 1,000 18 32 67
Downward Trending
Cristobal 1,750 1,000 0 0 0
Creator
Flat Trend Creator Dolly 1,000 1,000 0 0 0
Small Creator Edouard 250 275 5 9 18

The overall goal of the CAR structure is to reward communities and creators that are
growing. This provides an incentive mechanism for communities to continue adopting their
respective creator coins and to keep the community growing. At the same time, it makes
sure that communities that do not embrace the creator coin, Rally.io and Unite.io
ecosystems, or that simply exist to extract value, do not get the additional CAR rewards.

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10.3. RLY Network Association Tokenomics

10.3.1. Staking: Providing Liquidity to DeFi

In order to stimulate and increase liquidity in decentralized trading platforms, the RLY
ecosystem rewards $RLY token holders who provide liquidity to specific Uniswap and
Balancer liquidity pools. In total, 350M $RLY from the community token allocation have been
earmarked for distribution as liquidity pool (LP) rewards. There are currently 5 $RLY pools
eligible for staking rewards:

● BAL RLY/USDC 90–10

● BAL RLY/USDC 10–90
● BAL RLY/ETH 90–10
● BAL RLY/ETH 10–90
● UNI RLY/ETH

The current emission rate is 38 $RLY / block or roughly 7.3MM $RLY / month. Each pool
receives a share of these 38 $RLY / block based on weights voted by the community. The
current weighting is:

● 15.5% BAL RLY/USDC 90–10

● 15.5% BAL RLY/USDC 10–90
● 15.5% BAL RLY/ETH 90–10
● 15.5% BAL RLY/ETH 10–90
● 38% UNI RLY/ETH

You can review the reward pool contract here:

https://etherscan.io/address/0x9cf178df8ddb65b9ea7d4c2f5d1610eb82927230

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11. Conclusion
Blockchain technology enables the transition from Web2 to Web3, a transition that
empowers communities around the globe to organize and build cooperatively while
maintaining control over the products and protocols they build. Web3 also enables the
alignment of incentives and democratization of ownership, a key differentiator from Web2.
These characteristics have drawn in millions of people from around the globe to contribute
and participate in this exciting new space.

Web3 has already changed the game for many traditionally untouched spaces that have
lacked innovation. For example Bitcoin has become a store of value, a role historically
assigned to gold. Decentralized finance has resulted in billions in total value locked, and
NFTs have changed the gaming and artistic spaces forever. Web3 is potentially one of the
largest paradigm shifts in the history of digitization.

One of the reasons Web2 is so successful is because of the creators responsible for creating
new and exciting content. The creator space however has remained relatively untouched by
Web3, especially in terms of a creator’s ability to more effectively build and monetize their
clout and the extent with which fans can become part owners of that ecosystem. This is
what the RLY ecosystem aims to change. By onboarding creators and their fanbases to
Web3, the RLY protocol will attract millions of new users and contributors to crypto in the
coming years.

Five distinct entities (as of this writing) united by the RLY ecosystem and common goals aim
to accomplish the onboarding efforts and grow the RLY ecosystem. Each entity has its own
specific purpose, structure, expertise and works closely with their respective communities.
Underlying the ecosystem is the $RLY token that serves as a bridge connecting the RLY
ecosystem, the wider crypto space, the individual creator communities within the RLY
ecosystem and all the applications built on top of the RLY protocol.

Looking forward, the RLY protocol infrastructure, and the current and future applications
that can be built on it, have the potential to attract millions of users to the RLY ecosystem.
$RLY holders, creators and anyone looking to build on the RLY protocol will play a central
role in this regard.

We’re excited to share this mission with you and look forward to engaging with you on our
forums, Discord and other social media.

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