- 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.
- 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.
- 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.
- 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.