Question 1

What is RAIN?

Accepted Answer

RAIN is the governance token of Rain Protocol and is issued as an ERC-20 token on Arbitrum. Rain Protocol provides infrastructure for prediction markets to create markets, provide liquidity, and trade positions related to outcomes; RAIN is intended for future DAO governance, rather than being a required credential each time a market is created, assets are deposited, or a trade is made.

Question 2

What is Rain Protocol used for?

Accepted Answer

Rain Protocol is used to establish prediction markets around different outcomes of real-world or digital events. Market creators first define an event and its outcome options; participants can then provide liquidity or trade positions related to particular outcomes. When a market settles, the outcome determines how those positions are handled. The protocol provides this market process; it does not mean that the conclusion of every event is decided directly by RAIN holders' votes.

Question 3

What is RAIN's primary role?

Accepted Answer

RAIN's primary role is proposed protocol governance. The whitepaper links its governance role to the activation of the Rain DAO; therefore, before the DAO is formally activated, holding the token cannot be directly described as already conferring voting rights or an established scope of governance. Participating matters, procedures, and the activation time remain subject to the project's formal arrangements.

Question 4

Does holding RAIN represent ownership interests in the project?

Accepted Answer

No. The whitepaper explicitly distinguishes the token from ownership of the project: holding RAIN does not confer ownership of Rain Protocol, a claim on profits, a right to a refund, or a right of redemption. Even if governance participation exists after the DAO is activated, it should be understood as a governance arrangement under protocol rules, rather than as converting the token into corporate equity, debt, or a fixed-return contract.

Question 5

What is RAIN's supply?

Accepted Answer

The official whitepaper states that RAIN has a total supply of 1.15 trillion tokens. Total supply is the aggregate measure under the token's rules and is not equivalent to the quantity freely tradable at a given point in time: the actual tradable supply is also affected by lock-ups and subsequent release arrangements for different categories.

Question 6

How is RAIN allocated and released?

Accepted Answer

The whitepaper allocates RAIN among categories including presale, strategic sales, contributors, team, liquidity, ecosystem growth, and reserves, and states that some allocations are subject to lock-ups and linear vesting. During the lock-up period, that portion cannot enter circulation under the relevant arrangement; during linear vesting, it is unlocked gradually on a predetermined schedule rather than released all at once at a single point in time. Therefore, when assessing tradable supply, it is necessary to consider the category, lock-up period, and corresponding vesting progress together, rather than inferring from total supply alone.

Question 7

What should be considered when using RAIN?

Accepted Answer

RAIN operates on Arbitrum. For self-custodied transfers, the sending address must use the Arbitrum network and hold the asset used to pay gas for that on-chain transaction; the private key or seed phrase determines control over the assets at that address, and loss or disclosure usually cannot be reversed or recovered by the protocol for the user. The recipient address and network should also be checked before submission.

Question 8

How can users participate in markets on Rain Protocol?

Accepted Answer

Participants can take part in markets around event outcomes set by market creators: creators define markets, liquidity participants provide the funding conditions for trading, and traders acquire or exchange positions related to different outcomes. Holding RAIN itself is not an entry condition for these core operations; before participating in a particular market, users still need to understand that market's outcome definitions and settlement rules.

Question 9

How does Rain Protocol handle disputes over market outcomes?

Accepted Answer

Outcome handling begins with the market rules: the whitepaper describes that market outcomes can be decided by creators; for some public markets, an AI oracle system can be used. If an outcome is disputed, the dispute-resolution mechanism can escalate the matter to a human oracle. Therefore, “creator decision,” “AI processing,” and “human review” are different layers and should not be conflated as the same type of automated settlement.

Question 10

Is holding RAIN required to use prediction markets?

Accepted Answer

No. The whitepaper states that using the core prediction-market functions—including creating markets, depositing assets, and trading—does not require holding RAIN. The distinction between RAIN and these usage operations is that the former is positioned as a governance token related to future DAO activation, while the latter are protocol market functions; holding the token must not be taken to imply additional trading access or priority in market settlement.

Question 11

What are the main risks of RAIN?

Accepted Answer

The main risks do not arise solely from the token price. RAIN's market price and liquidity may change; use of the protocol also involves self-custody and Arbitrum transaction fees; and prediction markets depend on market rules, outcome determination, and dispute procedures. Smart contracts, operations, and outcome handling may also affect the user experience. These factors do not constitute a promise of returns; before participating, users should separately understand the rules for the token, wallet, and specific market.

Question 12

Where can I find official information about RAIN?

Accepted Answer

The official whitepaper published by Rain Protocol should be the starting point for checking RAIN's token positioning, limitations on rights, total supply, allocation, and protocol mechanisms. Where the DAO's activation status, governance scope, or subsequent changes to protocol rules are involved, formal updates subsequently published by the project should also be consulted, because descriptions relating to future arrangements are not equivalent to arrangements already implemented.

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