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.