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 I'd enjoy Factions being open like they were in D1, however I did enjoy the Faction Rally event. Maybe do both? A Faction Rally could be used to introduce new weapons early and you could farm for rolls on faction weapons and armor in between Rallys