With the release of Curse of Osiris, each Faction has received 5 new weapons. These weapons become available over the course of the season, and cannot be earned through Faction Engrams immediately.
In the first Faction Rally of Season 2 (this week), there is a new Auto Rifle available as the Winner’s Offering. No new Faction Weapons are available through Faction Engrams.
In the second Faction Rally of the season, the Winner’s Offering is updated to a new weapon. Additionally, the previous Winner’s offering (Auto Rifles) and an additional weapon are added to Faction Engram rewards.
The final Faction Rally of the season will follow this functionality: The Winners Offering will be updated to a final weapon that has yet to be featured. The previous Winner’s Offering will be added to the Faction Engram rewards, alongside an additional weapon. This brings the total to four weapons within the Faction Engram, and a final Winner’s Offering for factions to compete for over the course of the event.
Logged on to my Hunter (pledged to New Monarchy), collected my Faction Rally reward (Loquitor IV), and realized it was only 328; regardless of the fact that my Hunter has three unique, full sets of armor, all at 335 (base 330), and logged right off.
I realize Bungie never guaranteed, the Faction rewards would drop at current power levels; but I persoanally found this to be unacceptable, and simply turned it off for today.