Creator Coin Adds Initial, Limited Redeem Functionality
tl:dr: Creator Coins can now be redeemed for USDC
We have now launched the first phase of Creator Coin redemptions. Currently, Creator Coins in the Rally Network can be purchased, donated/tipped, and transferred between users of the network. Rally.io will now enable limited rights to redeem Creator Coins for USDC, a crypto stablecoin pegged to the US Dollar.
This first phase of Creator Coin redemptions allows our Rally Network Creators to redeem some of the Creator Coin tipped to them by fans, directly through an interface on Rally.io. To redeem, from your Portfolio page, click on the Creator Coin that you own. This will take you to the Creator Coin detail page where you will find the redeem button below your balance. At the moment, the redeem feature is only available on our desktop website, not on mobile.
Note that there are limitations in this initial phase, including a $150 limit per transaction and possible KYC/AML requirements from our processing partners, as part of Rally’s compliance process.
When Creator Coins are redeemed during this phase, those coins are burned, and the mainnet $RLY underlying the Creator Coins are released. The calculation of the $RLY underlying each Creator Coin is determined through the token bonding curve that ties each Creator Coin to a number of $RLY; as each Creator Coin in a redemption transaction is burned, less $RLY will be released with the next Creator Coin.
Once the total number of $RLY is released from the Creator Coins in that transaction, the market rate of $RLY will determine the amount of USDC sent to the redeeming user’s Ethereum wallet. As with Creator Coin purchases, all redemptions of Creator Coins on the Rally.io sidechain will be batched and reflected on mainnet $RLY.
The second phase of Creator Coin redemptions will initiate when our Bridge Exit launches later this November. Bridge Exit enables sidechain $RLY to exit the sidechain onto the mainnet. This will enable sidechain participants and holders of Creator Coin to receive mainnet $RLY governance tokens and, accordingly, participate in voting, governance, and the future of the Rally Network.
Thanks for supporting the Rally community that is on a mission to empower creators, brands, and communities to tokenize. Together, we will bring the next 100 million users into crypto.
