Community Activity Rewards are an incentive designed to reward Creator communities who actively participate in the Rally Network. Communities earn rewards based on activity involving their Creator Coin. When rewards are earned by a community, $RLY will be rewarded to the community and used to add additional backing to that community’s Creator Coins. As the number of $RLY backing that Creator Coin increases due to the rewards provided to that community, the Creator and their entire community of fans will benefit, as the value of the Creator Coin as a whole will increase.
$RLY is an ERC-20 governance token on the Ethereum blockchain that enables governance and supports transactions on the Rally Network. Each Creator community in the Rally Network has its own unique Creator Coin, and all Creators Coins are backed by $RLY.
When more Creator Coin exists for a specific community when compared to previous amounts, that community will earn a portion of the Community Activity Rewards. Simply by owning and holding a community’s Creator Coin, fans can help earn rewards benefiting the Creator and their entire community.
Yes, a person can help earn rewards for every community whose Creator Coin they own.
Community Activity Rewards come from the Network Usage Rewards allocated pool of $RLY.
50% of all $RLY is allocated for general Rally Network Usage Rewards, including Community Activity Rewards. This bucket is intended to be allocated by the Rally Network governance community to launch, grow, and scale the Rally Network. Network Usage Rewards will be distributed over a period of 8 years. The first iteration of the Community Activity Rewards program will allocate up to 1,000 $RLY per launched Creator per day, with rewards being distributed each week. For example, with 30 live creators on rally.io, there will be a pool of 210,000 $RLY available to be earned each week.
When new creators are added to rally.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, the Community Activity Rewards will increase by 1,000 $RLY per day. When creators 101-200 are launched on rally.io, each launched creator will increase the rewards by 900 $RLY per day. This trend will continue until we have 1000 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 Community Activity Rewards daily.
A table summarizing this information is below.
Community members holding $RLY may propose changes to Community Activity Rewards. Please visit the Rally Network Discussion Forum to learn about proposal guidelines.
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).
In the Community Activity Rewards module, an Annual Percentage Yield (APY) number is displayed. This APY is calculated as follows: At any given hour of the week, we calculate the average hourly reward this community has earned so far this week. This average hourly reward is then divided by the total amount of RLY that is backing this Creator Coin and multiplied by the number of hours in a year.
For example, a community has earned 25 RLY in Hour 1 and 75 RLY in Hour 2 for an average of 50 RLY per hour so far. At the time of the Hour 2 reward calculation, there was 100,000 RLY backing all of that specific Creator Coin. Thus (50/100,000) * 24 hrs * 365 days = 4.38 = 438% APY.
Rewards will be distributed at the end of each week, on Saturdays at 12AM UTC. At that time, $RLY rewards will be added to each Creator Coin community that earned rewards. If no communities earn rewards at that time, the $RLY allocated for that week will remain in the Network Usage Reward bucket and can be used for future Community Activity or other Network Usage rewards.