Rain (RAIN) is the native token of Rain, a decentralized prediction and options protocol built on the Arbitrum network. The protocol lets users create, trade and resolve on-chain markets about real world events, from elections and sports to project milestones and private community topics. Markets settle using an automated market maker and a layered resolution system that combines AI oracles with human dispute review.

RAIN is an ERC-20 token on Arbitrum with 18 decimals. It launched in August 2025 with an initial total supply of 1.15 trillion tokens. The token is described as a utility and governance asset for Rain and is required to use the application.

RAIN should not be confused with other assets using similar tickers, such as Rain Coin on Polygon or Rainmaker Games, which are unrelated projects.

1. Trading access and “Trading Power”

To use Rain’s markets, users must hold RAIN in the same wallet as their trading balance. Holding RAIN gives “Trading Power,” which caps how much of a user’s deposited funds can be actively traded.

The white paper gives an example ratio where holding 1 dollar of RAIN allows trading up to 100 dollars of deposited funds. Trading Power does not add leverage or yield, it only regulates how much of an existing balance is available for positions, tying protocol usage to RAIN demand.

2. Governance and Rain DAO

RAIN is the governance token for Rain DAO. Holders can propose and vote on matters such as:

• Market structure and fee parameters
• Oracle and dispute resolution rules
• Allocation of development and ecosystem funds
• Upgrades and integrations

The DAO is intended to take over more control as the protocol matures, shifting decisions from the core team to token holders.

3. Fee recycling, rewards and buyback

Each prediction market on Rain charges a 5% fee on trading volume. That fee is split into:

• 2.5% for participation rewards
  • 1.2% to market creators
  • 1.2% to liquidity providers
  • 0.1% to the resolver (creator or AI oracle)
• 2.5% used to buy RAIN on the open market and burn it

Over time, this creates ongoing demand for RAIN from protocol activity and reduces the circulating supply through burns.

In parallel, dynamic inflation mints new RAIN equal to 10% of the amount burned, which goes to a foundation-controlled pool for team incentives, ecosystem development, marketing, partnerships and community programs.

4. Disputes, staking-like uses and credits

Participants who dispute market outcomes must post collateral linked to market volume, aligning dispute incentives with honest behavior. The protocol also plans an in-app credits system, funded by a portion of the ecosystem allocation, where users can earn credits for actions like trading and providing liquidity and later convert those credits into RAIN or use them for future rewards.

Initial and current supply

According to the white paper, RAIN launched with an initial total supply of 1.15 trillion tokens. This is not a fixed maximum because the protocol can mint new tokens as part of its inflation mechanism, while also burning tokens via buybacks funded from trading fees.

Market trackers currently report:

• Total supply: 1.15 trillion RAIN
• Circulating supply: roughly 230–240 billion RAIN (around one fifth of total supply)
• Remaining tokens subject to vesting, treasury control or future release

These figures can change over time as vesting, burning and inflation mechanisms operate.

Allocation and vesting

The white paper outlines the initial allocation as:

• 1% – Presale and early credits refunds
• 9% – Strategic sale
• 10% – Contributors, advisors and strategic partners
• 10% – Team
• 20% – Marketing and development fund
• 15% – Launchpads, exchanges and liquidity
• 15% – Ecosystem growth and staking
• 20% – Reserve and treasury

Most allocations are subject to cliffs and multi-month or multi-year vesting schedules. Team tokens, for example, have a short cliff followed by two years of linear vesting. Strategic sale tokens unlock only after a cliff, with no tokens released at the token generation event. The reserve and treasury are designed to be managed by multisig and later by DAO governance.

Rain runs prediction and options markets on Arbitrum, with USDT as the primary trading asset. An automated market maker sets outcome share prices based on how much liquidity is placed on each outcome, so market odds update continuously as traders buy and sell positions.

The protocol supports both:

• Public markets, open to anyone
• Private markets, where access and resolution can be restricted to specific groups

Outcomes can be resolved in three stages:

1. Delphi, an AI oracle composed of several independent models that fetch and compare external data
2. Lex, an AI “judge” that reviews disputes with supporting evidence
3. Decentralized human oracles for final appeals in contested public markets

For private markets, the creator usually resolves the outcome, with the dispute process available as a backstop. The design aims to keep settlement on-chain with clear rules for rewards, fees and challenges.