FAQs

Frequently asked questions

For crypto beginners

What problems do cryptocurrency address?

Inflation:

- Traditional currencies (aka fiat or paper money) face the constant issue of inflation where more money can be created which causes value dilution across that currency.

- Cryptocurrencies address the issue of inflation by creating a fixed creation schedule (more supply cannot be created faster) and capping the total maximum amount of cryptocurrency that can be created.

Country-specific currencies:

- Almost every country has its own unique currency which causes issues when traveling, making transactions in different countries/currencies.

- Cryptocurrencies are not tied to their country of origin so they are truly global in nature.

Transaction inefficiencies:

- With traditional currencies, in order to digitally move that currency from one person to another, you would need to go through a middle person or institution like a bank. Banks can be slower than we need them to be since transfers take a couple days to process and can even physically close down.

- Cryptocurrencies on the other hand can be instantly transferred from one person to another across the globe.

What is blockchain and why is it important to cryptocurrency?

Blockchain is a decentralized secured database technology. It refers to literal chains of data entered as linked blocks. These data blocks are linked chronologically and once a new block is created, it is very difficult to change the information stored in that block.

Cryptocurrencies are built using blockchain as its underlying database allowing operations to be decentralized and facilitating instant and secured transactions.

For Creators

What are Creator Coins?

Creator Coins are social tokens that are a fully customizable, branded cryptocurrency unique to the individual creator.

What are the benefits of Creator Coin to a creator? / Why do creators need their own currency?

Creator Coin gives the creator the power to create their own digital economy, independent from any specific platform. Creator Coin allows creators to create an entire economy around their content and their fan communities in a way that works best for them. This allows creators more direct interaction and exchange with their communities and the freedom to unlock unlimited methods of monetization. Check out our Creator page for more info.

What is the Rally Network?

The Rally Network is an open, decentralized network that is powered by its native ERC-20 governance token, $RLY. $RLY is an Ethereum blockchain-based asset that can be sent and received in the Ethereum mainnet network.

What is the relationship between Creator Coin and $RLY?

Creator Coin is minted (aka validated as legitimate in the blockchain) and a certain amount of $RLY is embedded in every Creator Coin giving it real monetary value.

Who is Rally for?

Rally is a network for all influencers, streamers, musicians, artists, brands, and content creators from all backgrounds. We believe that a decentralized system allows for all creators - including creators from underrepresented groups - to have economic freedom and direct access to their fans and monetization methods.

What can a creator do with their coin?

An easy way to think about use cases is to evaluate what activities you and your community are currently engaging in that involve traditional forms of payment/rewards/donation and replace that with Creator Coin. Creators get to use their imagination to think of new ways to engage and reward their communities and are not bound by the limitations of any one platform, as Creator Coin works across all platforms.

How do creators make money from Creator Coin?

The goal of Creator Coins is to enable creators to unlock an economy around their community and to tap into new methods of monetization that work across multiple platforms. Not only does it create an engaged community who can tip with Creator Coin and spend Creator Coin to get exclusive access to content, special access, events and merch, but it enables creators to monetize without paying high platform fees. It’s not just about making money, but also building a loyal fanbase and rewarding them for their support.

Creators and their community also are able to earn weekly network community rewards in the form of $RLY when your coin economy is highly engaged. More on community rewards here.

Creators and their community can convert Creator Coin into $RLY, USDC, and/or “bridge” Creator Coin (in the form of $RLY) into their Ethereum wallet. Such transactions may be subject to passing compliance requirements, restrictions and limitations on amounts. More on redeeming and bridging out here. Please note that based on your place of residence and your ability to satisfy compliance requirements, you may be restricted from exiting your Creator Coin (in the form of $RLY) to your Ethereum wallet, and, accordingly, any value you acquire on Rally.io in the form of Creator Coin will be locked in the sidechain.

Please review the Rally.io wiki for a complete list of restricted jurisdictions and compliance requirements, which are subject to change.

How is the price of a Creator Coin determined?

The price of a Creator Coin is variable but, in general, the value of any specific coin is determined by supply and demand, holding patterns of the coin, overall transactions, and the current market price of $RLY. Additionally, because creators exist together in the Rally Network, there is a network benefit effect based on the engagement of other creators. To read more about the algorithms behind everything, read more here.

What does it cost to create a Creator Coin?

Right now, it’s free to create a coin and there are no platform fees charged to create one.

How do I get my own Creator Coin?

You can apply here to let us know you are interested. Currently we are invite-only, but we are working hard to launch more capabilities to serve all the creators who are interested. In our invite-only phase, we are looking for creators with engaged communities who produce consistent content. We are also looking for creators that have strong ideas of how they will integrate their coin into their communities.

How long does it take to get my coin launched?

Generally assume 2-3 weeks from when we contact you post application submission.

Can I recommend someone to get their own Creator Coin?

Yes of course! Please send the application to any creators who are interested. If you are already a creator with us and want to recommend someone, please reach out to your Account Manager to get them introduced.

I’m a manager/agency/platform, how can I work with Rally?

Yes, you can absolutely work with Rally. If you would like your own Creator Coin, you can apply using the same application here. If you are looking to launch a Creator Coin for a creator you manage or that is part of your agency/platform, you can fill out their application for them and make a note in the application.

Do I have to buy my own coin at the beginning?

No, you do not have to purchase your own coin supply. Currently all creators who are invited to launch their own coin are given a supply of 50,000 coins.

What is the “creator fee”?

The creator fee is a slip-based fee which is charged to the seller when they go to convert or sell a creator’s coin. The fee is proportional to the price impact the sale will have the larger the amount, the larger the overall percentage of the creator fee. This is to encourage smaller, more frequent transactions that promote efficient price discovery.

This is a universal feature that applies to all coins on the platform. However, if a creator would like to exempt their coin from the fee entirely, they can do so during onboarding or after their coin has launched by emailing Rally support.

For Fans

What are Creator Coins?

Creator Coins are social tokens that are a fully customizable, branded cryptocurrency unique to the individual creator.

What are the benefits of Creator Coin to fans?

Creator Coin allows fans to be a direct part of a creator’s community by owning a piece of their economy and allows them to grow together with their favorite creators. By having, holding, tipping and transacting with the coins, fans show their loyalty and support to creators and get exclusive access and premium benefits the creator offers. Creator Coin is also not limited by creator to fan or fan to creator. Fans can also interact, engage and reward one another with fan to fan transactions.

What is the Rally Network?

The Rally Network is an open, decentralized network that has its own ERC-20 governance token, $RLY, which means it’s an Ethereum blockchain-based asset that can be sent and received in the Ethereum mainnet network.

What is the relationship between Creator Coin and $RLY?

Creator Coin is minted (aka validated as legitimate in the blockchain) and a certain amount of $RLY is embedded in every Creator Coin giving it real monetary value.

How is the price of Creator Coin determined?

The price of a Creator Coin is variable but in general, the value of any specific coin is determined by supply and demand, holding patterns of the coin, overall transactions, and the current market price of $RLY. Additionally, because creators exist together in the Rally Network, there is a network benefit effect based on the engagement of other creators. To read more about the algorithms behind everything, read more here.

How do I buy my favorite Creator’s Coin?

It’s easy! First make sure you have an account with Rally. If you don’t, sign up here. You can create an account through email or link to an existing Twitch account.

Can I nominate a creator to get their own Coin?

Currently we are invite-only but please let them know they can apply and that you are excited to engage with them using Creator Coin.

Can I own multiple different Creator Coins?

Absolutely! Fans can support as many creators as they want. You will be able to manage everything through your account view on Rally.io.

What is the “creator fee” listed when I go to sell a Creator Coin?

The creator fee is a slip-based fee which is an overall percentage of the amount that is being sold at the time. The larger the amount, the larger the overall percentage of the creator fee. This is used to help benefit the creator and to also encourage smaller, more frequent transactions that promote efficient price discovery.

For regulatory questions

Why are cryptocurrency regulated?

Cryptocurrency are highly scrutinized by the Securities and Exchange Commission (SEC). The SEC oversees the purchase and sale of any asset that it considers to be a “security”. The SEC is, at its core, a consumer protection agency that requires sales to US parties of investment assets that are securities to be regulated in a way that protects the public. If a cryptocurrency is not deemed a “security”, then the SEC does not regulate it.

What is a security?

A security is an asset involving “an (1) investment of money (2) in a common enterprise (3) with an expectation of profit (4) based solely on the efforts of others.” If all 4 of these criteria are met, then a cryptocurrency may be deemed to be a security. This 4-prong test is referred to as the “Howey Test”, named after a Supreme Court case from 1946. The SEC must apply this test to determine if a cryptocurrency, or any other digital asset, is a security.

Are Creator Coin securities under the Howey Test?

No, it is not anticipated that Creator Coin would be deemed securities under the Howey Test. Specifically, they are not bought with an expectation of profit, nor are they designed or marketed to create an expectation of profit, and fans are not passively waiting for any third party to create such profit - fans are incentivized to use Creator Coin to actively engage in their favorite creator’s community, and to receive the exclusive benefits offered only to users of the coin. In addition, fan and creator transactions, participation and activity using Creator Coin within the creator’s economy are what power the economy, and not solely the efforts of any single party. This said, regulatory guidelines are constantly changing, and there is no ability to predict either the actions of regulatory agencies or laws as they may change in the future. In addition, as described further below, none of the guidance provided in this FAQ may be considered to be legal advice - it is provided for informational purposes only. You should consult with your own legal counsel for legal advice and to keep up with the latest changes.

Was the Rally Network designed with regulatory compliance as a priority?

Yes, regulatory compliance has always been a priority for the designers of the Rally Network. But more importantly, the Rally Network was never destined to fall into the high risk areas of securities and speculation. Specifically, the Rally Network was designed with the core mission to harness the power of blockchain technology to solve a real world problem for digital content creators. The promise of enabling secure, verifiable peer-to-peer transactions, in the context of fan-to-creator and fan-to-fan transactions made possible only in the digital space, is a perfect use case for the promise of blockchain technology.

Are Creator Coin intended to be investments?

No, the value of Creator Coin is not in their investment potential, and fans and followers of creators buy them for very different purposes. Creator Coin are used to power the digital economies of creators as cryptocurrencies used to tip and pay for services, merchandise, special content, or other benefits offered by the creators who launch them, and also as digital tokens to provide intrinsic value to holders by giving them exclusive engagement opportunities with their creators - like a digital fan club. Purchasing them and holding them passively as investments does not fulfill the purpose or promise of Creator Coin.

What can creators do to minimize risks and maximize the power of their Creator Coin?

Creators should lean into their coin economies and focus on launching engagements and uses that are relevant and appeal to their own unique communities. Creators should tell their communities about all the exclusive benefits that their coin holders can receive. The primary use case for Creator Coin is to increase the quality and level of engagement between creators and their fans, and to give creators the tools to build their own digital economies.

Will Creator Coin prices fluctuate?

Yes, coin prices may fluctuate, and it is important to note that price changes for Creator Coin are not part of the design to encourage speculation, but rather to power the micro-economies of individual creators and address actual supply and demand within their digital economies.

How does Creator Coin pricing work to power creator economies?

Creator Coin economies are designed to operate like real economies. Algorithmically determined fluctuation in price enables creators and their communities to build up a creator economy in the early stages and provide automated liquidity without having to trust a counterparty on the internet. Rally’s technology enables the price to reflect market forces using a programmatic supply/demand curve - these curves are financial instruments called token bonding curves (TBCs). No central platform or person decides how a Creator Coin’s price will change, once it is launched - it all occurs programmatically in a smart contract. These curves assign a Creator Coin value in $RLY, the governance token that enables community governance over the Rally Network. Creator Coin value is algorithmically determined by TBCs based on the total supply of the coin - the less coins that exist and are used, the less $RLY is required to mint a new coin. By contrast, the more coins that exist, the more $RLY is needed to mint a new coin.

Can the Rally Network be trusted?

All creators and fans interested in learning more about the Rally Network will need to make their own assessment of the project and its goals. Here are a few things to consider:

Rally is backed by a16z Crypto, Coinbase Ventures, 1confirmation, Kenetic Capital, Twitch founders, Cultural Leadership Fund, and several leading blockchain community members.

The original project team brought decades of industry knowledge to the table and came from gaming, streaming, and entertainment companies like Kabam, YouTube, Facebook, Disney and Twitch; they also brought a passion for working with the creators of content. The mission of Rally at its core is to solve the problem caused by creators being cut out of control of the monetization of their own content and the management of their own fan communities.

Is Rally providing me with legal advice?

No, none of the guidance provided in this FAQ, Rally onboarding materials, blog publications or the Rally.io site or elsewhere may be considered legal advice. The Rally Network is designed to help creators to connect with their fans and own and control their content and digital economies. The information provided here is intended to educate creators and their fans about the nature of the Rally Network, and to provide an overview on the things that creators and their fans should know about regulatory discussions surrounding cryptocurrency. For legal advice, you should speak to your own counsel who can better advise on your specific situation.

Are creators responsible for their own Creator Coin economies?

Yes, creators are ultimately responsible for the way that they design, market and operate their own digital economies and coin. Creators should stay up to date on changes in the crypto industry, and continue to review and follow the guidelines provided here. The Rally Network assists with powering the technology behind Creator Coin, and enables creators to launch their coin on the blockchain. Once launched, creators and their Creator Coin are not controlled by a central platform, and accordingly creators are responsible for their own Creator Coin economies.

Does use of Creator Coin comply with third party platforms that creators may be involved with?

The goal of Creator Coin is to be complementary, and not adversarial or competitive, with the platforms, apps and channels through which creators operate to share their content. Creator Coin are platform-agnostic and operate free of any specific platform. The core mission of the Rally Network is to serve creators no matter what platform they are on. Creators should review the terms of use of the platforms that they utilize to ensure that they are not violating any of the terms of use by using Creator Coin. Currently, it appears unlikely that there are terms of use that are violated through Creator Coin usage.

Need more help?

If we haven’t answered your question, please email us at support@rally.io and we will do our best to get back to you.

Video Tutorials

Introduction to Creator Coin

How to Launch a Creator Coin

Top 5 Things to Know about Rally Network