Board Thread:Question and Answer/@comment-31961476-20170523104822/@comment-16682378-20170525145810

No, it's used to increase the Rank (not the level) of the Alliance this unlocks new jobs, more member slots & more art for the alliance icon, see Alliance

The alliances you meet in Alliance battles are determined by how much pts you do on the previous day. Meaning that if you are pitted against really weak/dead alliances 1 day - it can be good to be restrictive with the rods & only use the free attacks, to insure you get reasonable opposition the next day as well.