Here's your key to factions Bungie.
Just allow faction vendors to offer daily, weekly, and random bounties along with an updated gear pool from Y1. Every few seasons maybe update the pool to offer ornaments on the armor like you did with faction rallies and like 4 new weapons.
Edit: If you were to bring back faction rallies just do like a Vex Offensive type thing where the faction with the most participants or kills wins.
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Honestly had a hard time deciding between the mix option and the d1 option. Honestly love the idea of faction rallies bringing in new guns every month but honestly they needed work on how many tokens you get for activities. While d1 style would just be better since now we not only have random rolled weapons but also armor 2.0 out. Personally think a mix would be best to keep new guns and ornaments coming in to go after. Then also having it so you can grind for basic gear and the winning guns between the faction rallies. Could just bring back year 1 gear as a start or give some love to forgotten weapon archetypes/ones that don't have a version in every element. This last bit can be ignored but feel I should mention forgotten archetypes and what not. Forgot ones are like the huckleberry and immanent storm(may have messed the name up) introduced in war mind with a unique feature of dealing more damage the closer you are but none seem to have made it to y2+ yet. Of course I will admit maybe I somehow overlooked it but this is just an example of the forgotten. Now version wise you can look at timeworn spire from iron banner. What we got since y2 started has been claws of the wolf and outlast(having memory issues so might be wrong name). The ones that came in y2 are energy while timeworn was kinetic and again unless I missed something we haven't gotten a kinetic variant of them. I'm sure there's a big list for all this but these are just examples I can think of right now. Also sorry for this going on longer than I thought lol