V2 Token Bonding Curve (TBC) Design on Rally.io
Since Rally has grown and attracted the attention of creators with larger expected audiences, a second TBC design was approved in May 2021. The V2 TBC, a linear curve, was designed to support larger Coin holders communities, larger single-transaction purchases, and fractional liquidity pools. As a result, higher transaction volume is required to meaningfully increase coin prices and thus coin prices on this curve may be more stable.
Based on positive feedback from creators, Rally defaults all new coins to the V2 (linear) TBC. The V1 TBC is still available for any creator who would like to opt into that design.
What has changed:
- There is no longer a 6-month cliff. Monthly genesis token vesting begins immediately.
- The maximum amount of genesis tokens a creator can vest has been reduced from 50% to 30% of circulating supply. In the case where a creator has already received genesis coins equalling more than 30% of circulating supply, they will retain ownership of their Coins, but not vest further until their supply increases enough for them to be eligible for the next unlock.
- At this time, vesting is being done manually. Coins will vest within 5 business days of their monthly Coin anniversary date.
What stays the same:
- Up to 3% of the genesis token grant unlocks each month. The amount a creator is eligible for is calculated on the day of the vest, based on the previous month’s average circulating supply.
What this means for Creators:
Beginning April or May 2022, your genesis token supply will unlock at a rate of up to 3% monthly. Genesis token vesting will occur up to 5 business days following the monthly anniversary date of your Coin.
If your Coin is less than 6 months old (launched after Oct 15, 2021) and launched on or after the 15th of its launch month: You will become eligible for vesting during April 2022.
If your Coin is less than 6 months old (launched after Oct 15 2021), and launched before the 15th of its launch month: You will become eligible for vesting during May.
If your Coin is more than 6 months old, and you have already reached your cliff and begun to vest: You will only be eligible to vest if your genesis coin holdings equal 30% or less of circulating supply. If your genesis coins equal more than 30% of the circulating supply, you will be eligible to vest once the percent you've already vested dips below 30%.
Below is an illustrative example of the V2 TBC:
The above example shows the following parameters for a Coin economy:
- During genesis, we minted 5 M CCs against negligible (0) RLY, as visible above.
- During pre-sale, we sold 2 M CCs at a fixed price of 1 RLY / CC , locking in 2 M RLY to the curve’s reserve pool.
- The exchange pricing function starts at 7M CC supply and 1 RLY per CC and concludes at 21M CCs with a price of 28.7 RLY per CC, locking in a target of 210M RLY in the curve’s reserve pool.