Rain
CeFi · Centralized ExchangeToken Transparency Filing
Project & Team
Description of Project
Provide a concise narrative that clearly states each of (a)–(e) below.
- (a) Problem the project solves — The problem the project is solving.
- (b) Operational priorities — Provide a high-level description of how the project expects to support ongoing development and operations over time.
- (c) High-level project overview — How the project works at a high level.
- (d) Primary token functions — The primary functions of the token (e.g. gov participation).
- (e) Control surface reliance — If any, briefly describe the anticipated or possible evolution of the protocol's governance/control model.
(a) Problem the project solves
Rain is a decentralized prediction-market protocol on Arbitrum that lets builders launch forecasting platforms and lets users create, fund, and participate in outcome-based markets tied to real-world or digital events.
(Source: White Paper, About the $RAIN token)
(b) Operational priorities
Rain's near-term operational priorities are completing the protocol audit, integrating additional blockchain networks, enhancing the oracle and dispute-resolution framework, expanding incentive mechanisms for users, and implementing DAO-based governance.
(Source: White Paper)
(c) High-level project overview
Rain supports both public and private prediction markets, allows permissionless market creation through its SDK, uses automated-market-maker liquidity pools, and lets users trade outcome shares through market and limit orders. The protocol runs its core market operations natively on Arbitrum and supports cross-chain deposits from Ethereum, BNB Chain, Base, and Bitcoin.
(Source: White Paper, About the $RAIN token)
(d) Primary token functions
RAIN is the protocol's governance token and part of its fee and incentive design. The White Paper classifies RAIN as a governance token, the token overview states that contributors are rewarded in RAIN and that 2.5% of market trading volume funds buyback-and-burn, and the Raindrops system reserves a dedicated RAIN allocation for beta participants. The public record conflicts on whether holding RAIN is required for market participation. The token overview states that holding RAIN is required for Trading Power and participation in prediction markets, while the DAO-governance materials and the White Paper state that RAIN is not required to use the app, trade, deposit, or create markets.
(Source: White Paper, About the $RAIN token, The Raindrops System)
(e) Control surface reliance
The public record conflicts on current governance activation status. The White Paper states that the protocol is intended to transition to a DAO and that, at issuance and admission to trading, governance was not yet decentralized and no governance rights were yet exercisable, while current help-center materials state that tokenholders submit and vote on proposals and that governance is the primary utility at launch. The White Paper states that the Foundation controls protocol parameters and upgrades until DAO governance is active and that protocol upgrades and treasury actions are managed through a Foundation-controlled multisignature structure.
(Source: White Paper, About the $RAIN token)
Known Project Team
For each existing entity: Labs/DevCo (e.g., Founder, CEO, CTO, COO), Foundation (e.g., President, Executive Director, CFO, COO), and DAO / onchain governance leadership (if applicable) list the: (a) full names, (b) official titles, (c) and prior experience of key team members. For any non-existent entity, explicitly mention it does not exist. External links may be included but they will not factor into the score.
Full Name | Entity | Official Title | Prior Experience |
|---|---|---|---|
Rain has not publicly named any DevCo or labs-entity officers in cited sources, and no public DevCo title roster or prior-experience disclosures were identified. | Labs | ||
Lorena Del Carmen Diaz Moreira | Foundation | Founder and member of the management body | Not publicly disclosed |
Ana Gabriela De Leon Macias | Foundation | President and member of the management body | Not publicly disclosed |
Rebeca Isabel Munoz Arosemena | Foundation | Secretary and member of the management body | Not publicly disclosed |
Rain has not published a named DAO leadership roster, and the White Paper states that the DAO had not yet been activated at admission to trading. Current documentation states that tokenholders submit and vote on proposals, but the cited public record does not disclose a named DAO executive slate or prior-experience details. | DAO | ||
Blockworks note: (Source: White Paper, About the $RAIN token) |
DAO Structure
Provide a structured description of the DAO's governance, powers, and economic rights. If a DAO does not exist, state so. Address the lettered items below. Even if there is no DAO, there must be an answer to (d).
- (a) IP ownership & control — State what IP the DAO owns or controls (e.g., codebases/repos, trademarks/brands). Note any license if relevant.
- (b) Contract/admin powers — List onchain or administrative authorities and limits: pause/upgrade roles (e.g., multisig pause), governance-executor authorities, and the method of authority for each (e.g., veto, majority, super-majority).
- (c) Locked-token rights (conditional) — If locking/staking for additional rights exists, explain the additional rights and what tokenholders can and cannot decide. If no locking mechanism exists, leave absent.
- (d) Value accrual & holder rights — If any, describe the current rights of tokenholders over revenue distribution and the treasury.
- (e) Dissolution authority — State who can dissolve/wind up the DAO and by what mechanism (e.g., onchain vote threshold, board resolution of a legal wrapper).
(a) IP ownership & control
Rain has not publicly disclosed IP ownership or control arrangements in cited sources.
(Source: White Paper)
(b) Contract/admin powers
The public record supports a bounded and internally inconsistent conclusion. Current help-center materials state that tokenholders submit and vote on proposals, while the White Paper states that at admission to trading no governance or other functional rights were yet exercisable, the DAO was not yet activated, and the Foundation controlled protocol parameters and upgrades until DAO governance became active. The White Paper also states that protocol upgrades and treasury actions are managed through a Foundation-controlled multisignature structure. Market-level control rights are public. Private-market creators act as resolvers, disputes must be opened within one hour, disputes require collateral equal to 0.1% of market volume or $1,000 whichever is less, disputes are first reviewed by Lex, and disputes may be appealed to decentralized human oracles that make a binding final decision.
(Source: White Paper, About the $RAIN token)
(c) Locked-token rights (conditional)
Rain has not disclosed any locking or staking mechanism that grants additional governance rights in cited sources. Public sources describe governance rights in terms of tokenholding and later DAO activation rather than a separate lock-based rights layer.
(Source: White Paper, About the $RAIN token)
(d) Value accrual & holder rights
The reviewed public record states that 2.5% of market trading volume is directed to buyback-and-burn and that 10% of burned tokens are re-minted, manually claimed by the Rain team, and allocated to the Foundation for team rewards, ecosystem development, marketing campaigns, strategic partnerships, and community contributors. The White Paper states that the issuer retained 157,000,000,000 tokens and that certain token allocations remain subject to lockup and vesting schedules. Rain has not publicly disclosed fuller nonpublic treasury-rights arrangements or dissolution authority.
(Source: White Paper, About the $RAIN token)
(e) Dissolution authority
Rain has not publicly disclosed dissolution authority in cited sources.
(Source: White Paper)
Primary Foundation
For the Primary Foundation do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist. Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
- (a) Entity — Type and jurisdiction.
- (b) IP ownership & control — What IP the entity owns/controls (repos/code, trademarks/brand; license optional) and an explanation of any subsidiary entities.
- (c) Powers over DAO, treasury, protocol-controlled resources, and token administration — If any, describe the current powers over DAO governance, treasury actions, protocol-controlled resources (e.g. revenue), token administration, or reward parameters, and the method/threshold for each.
- (d) Powers over DevCo — Explain whether the foundation can exert direct or indirect influence over decision-making of the DevCo.
- (e) Contract/admin powers — Pause/upgrade/governance-executor authorities and the method/threshold for each (e.g., veto/majority/super-majority; "3/5 multisig").
- (f) Current economic arrangements and distribution policies — Describe any current governance-approved, contractual, or programmatic mechanisms, if any, by which protocol-controlled resources, treasury assets, fees, revenue, rewards, or token distributions may be directed to this entity, its equityholders, contributors, or other participants. If no such mechanism currently exists, state that explicitly. Do not discuss hypothetical future dividends, repurchases, or distributions unless formally adopted.
(a) Entity
The primary Foundation is Rain Foundation, a Panamanian foundation registered on July 14, 2025 at Panama City, Betania, Via Ricardo J. Alfaro, PH The Century Tower, office 307, Panama. Public filings identify the Foundation's Panamanian registry number as 25062124 and its tax number as 25062124-3-2025. The Foundation's council consists of founder Lorena Del Carmen Diaz Moreira, President Ana Gabriela De Leon Macias, and Secretary Rebeca Isabel Munoz Arosemena. The Rain Foundation is the legal entity responsible for issuance and administrative oversight of the RAIN token and acts as offeror, issuer, and token-administration body. (Source: White Paper, About the $RAIN token, CoinGecko Rain Profile)
(b) IP ownership & control
Rain has not publicly disclosed the Foundation's IP ownership, including ownership of code repositories or trademarks, and has not publicly disclosed any subsidiary structure.
(c) Powers over DAO, treasury, protocol-controlled resources, and token administration
The Rain Foundation holds token-administration authority over RAIN and a Foundation-controlled multisig governs protocol upgrades and treasury actions while the transition to DAO governance remains incomplete. The White Paper states that the Foundation manages governance until decentralization occurs. The Hacken audit identifies a single owner account with authority to execute daily minting, set the oracle price feed, update the treasury address, upgrade the proxy implementation, and transfer ownership. Re-minted tokens are manually claimed by the Rain team and allocated to the Foundation. The protocol executed its first DAO governance vote on July 29, 2026, under which the Foundation committed $23 million in USDT to purchase and permanently burn locked Credit Refund allocations at a fixed rate of $0.0031 per token. The Foundation, team-controlled wallets, and team vesting allocations abstained from that vote. Multisig signer counts and thresholds are not publicly disclosed. (Source: White Paper, Hacken Audit, About the $RAIN token, DAO Settlement Press Release)
(d) Powers over DevCo
Rain has not publicly identified a DevCo or labs entity as a distinct legal entity. Because no DevCo has been publicly identified, no Foundation powers over a DevCo are disclosed.
(e) Contract/admin powers
The public record is internally inconsistent on contract-admin details. The White Paper states that the token contract is non-upgradeable, while the Hacken audit scope describes an upgradeable proxy token whose owner can change the oracle feed, the treasury address, and the proxy implementation, and can transfer contract ownership. A Foundation-controlled multisig governs protocol upgrades and treasury actions. The signer composition and approval threshold of that multisig are not publicly disclosed. (Source: White Paper, Hacken Audit)
(f) Current economic arrangements and distribution policies
Two programmatic mechanisms currently direct protocol-controlled resources to or through the Foundation. First, the protocol re-mints 10% of burned token amounts, and these re-minted tokens are manually claimed by the Rain team and allocated to the Foundation for team rewards, ecosystem development, marketing campaigns, strategic partnerships, and community contributors. Second, under the DAO-approved Credit Refund settlement executed on July 29, 2026, the Foundation is deploying $23 million in USDT to acquire locked Credit Refund allocations at $0.0031 per token, with 100% of acquired tokens permanently burned. The separate deflationary mechanism that allocates 2.5% of every market's trading volume to buy back and burn RAIN removes tokens from circulation and does not direct assets to the Foundation, its contributors, or other participants. No governance-approved dividend, repurchase-for-equityholders, or other distribution mechanism benefiting Foundation equityholders has been adopted. (Source: About the $RAIN token, What Is Rain Protocol, DAO Settlement Press Release)
Blockworks note: Circulating and total supply figures require a fresh pull from CoinGecko or the Arbitrum explorer at publication time. Total supply changed after the July 29, 2026 settlement burn and the ongoing 2.5% volume-based buyback and burn.
Primary Dev Co
For the Primary DevCo do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist. Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
- (a) Entity — Type and jurisdiction.
- (b) IP ownership & control — What IP the entity owns/controls (repos/code, trademarks/brand; license optional) and an explanation of any subsidiary entities.
- (c) Powers over DAO, treasury, protocol-controlled resources, and token administration — If any, describe the current powers over DAO governance, treasury actions, protocol-controlled resources (e.g. revenue), token administration, or reward parameters, and the method/threshold for each.
- (d) Powers over Foundation — Explain whether the DevCo can exert direct or indirect influence over decision-making of the Foundation.
- (e) Contract/admin powers — Pause/upgrade/governance-executor authorities and the method/threshold for each (e.g., veto/majority/super-majority; "3/5 multisig").
- (f) Current economic arrangements and distribution policies — Describe any current governance-approved, contractual, or programmatic mechanisms, if any, by which protocol-controlled resources, treasury assets, fees, revenue, rewards, or token distributions may be directed to this entity, its equityholders, contributors, or other participants. If no such mechanism currently exists, state that explicitly. Do not discuss hypothetical future dividends, repurchases, or distributions unless formally adopted.
(a) Entity
Rain has not identified a public legal DevCo entity in cited sources.
(b) IP ownership & control
Rain has not identified a public legal DevCo entity in cited sources.
(c) Powers over DAO, treasury, protocol-controlled resources, and token administration
Rain has not identified a public legal DevCo entity in cited sources.
(d) Powers over Foundation
Rain has not identified a public legal DevCo entity in cited sources.
(e) Contract/admin powers
Rain has not identified a public legal DevCo entity in cited sources.
(f) Current economic arrangements and distribution policies
Rain has not identified a public legal DevCo entity in cited sources.
Blockworks note: Rain has not identified a public legal DevCo entity in cited sources. The public record refers to a Rain Team that manually claims re-minted tokens before allocating them to the Foundation and to contributors who participate in the protocol ecosystem, but it does not disclose a launch-era DevCo legal name, jurisdiction, ownership structure, formal powers over the Foundation, or separate contract-admin authorities for a DevCo entity.
(Source: White Paper, About the $RAIN token)
Token Supply & Allocations
Initial Allocation
Disclose launch and initial supply details in a single initial allocation schedule covering the token's launch.
- (a) Launch supply totals — The total number of tokens issued at launch, the total number of tokens locked at launch or the total number of tokens unlocked at launch.
- (b) Recipient categories & use of funds — The recipient categories with brief explanations as to how the category will use the tokens so an auditor can distinguish each bucket.
- (c) Initial price per token (if applicable) — The initial price per token at TGE. If the token launched via a liquidity bootstrapping mechanism, auction, or other price-discovery process rather than a fixed offering price, describe that mechanism and the final market set price instead. If no fixed price was set, state so.
- (d) Ticker / market symbol — The ticker/market symbol.
- (e) Total supply & supply regime — The total supply and whether the supply is fixed (if not explain inflation rate or deflation rate).
- (f) Initial vesting / release schedules — The initial vesting/release schedules (identify which categories/recipients are subject to vesting and the high-level timing logic).
(a) Launch supply totals
The total offered or traded supply is 1,150,000,000,000 RAIN, and the token launched through Gems Launchpad before broader exchange trading. The White Paper states that there was a small initial circulating supply and later vesting or lock-up schedules for allocated categories. As of July 2026 circulating supply is approximately 694,520,661,189 RAIN. (Source: White Paper, Tokenomist, CoinGecko)
(b) Recipient categories & use of funds
- Recipient Category: Marketing and Development Fund
- Allocation: 20%
- Publicly Described Use: Funds protocol marketing and ongoing development.
- Recipient Category: Reserve and Treasury
- Allocation: 20%
- Publicly Described Use: Held as protocol reserve and treasury for future operations.
- Recipient Category: Ecosystem Growth and Staking
- Allocation: 15%
- Publicly Described Use: Funds ecosystem growth and staking incentives; 2% of this allocation, equal to 23 billion tokens, funds Raindrops rewards.
- Recipient Category: Launchpad, Exchanges and Liquidity Providers
- Allocation: 15%
- Publicly Described Use: Supports launchpad distribution, exchange listings, and protocol liquidity.
- Recipient Category: Team
- Allocation: 10%
- Publicly Described Use: Allocated to the team under predefined lockup and linear vesting.
- Recipient Category: Contributors, Advisors and Strategic Partners
- Allocation: 10%
- Publicly Described Use: Rewards contributors, advisors, and strategic partners.
- Recipient Category: Strategic Sale
- Allocation: 9%
- Publicly Described Use: Allocated to strategic-sale participants.
- Recipient Category: Presale (Miners, Private Sale, Refund)
- Allocation: 1%
- Publicly Described Use: Allocated to presale participants including miners, private sale, and refunds. (Source: Tokenomist, White Paper, The Raindrops System)
(c) Initial price per token (if applicable)
The White Paper states that the initial launchpad determined the sale price in accordance with its internal allocation model. Rain has not disclosed a fixed public TGE price or auction-clearing price in cited sources. (Source: White Paper)
(d) Ticker / market symbol
The ticker is RAIN. (Source: White Paper, CoinGecko)
(e) Total supply & supply regime
Total token supply is 1,150,000,000,000 RAIN. The supply regime is both deflationary and inflationary. 2.5% of market trading volume funds buyback-and-burn, and 10% of burned tokens are re-minted and allocated to the Foundation through the Rain team. (Source: White Paper, About the $RAIN token)
(f) Initial vesting / release schedules
Token allocations are subject to vesting and lock-up schedules designed to align long-term incentives and meet exchange requirements, with release schedules ranging from 6 to 24 months. Team, strategic partners, and presale participants are subject to predefined lockup and linear vesting schedules. The Raindrops rewards allocation vests linearly over 12 months. (Source: White Paper, The Raindrops System)
Airdrop Process
Address each of the following sub-items based on the project's airdrop status. If a sub-item does not apply to the project's situation, state that explicitly.
- (a) Planned but not yet executed airdrop — If the project has planned but not yet airdropped, commit to publishing a recipient wallet list in a public channel and provide it to Blockworks quarterly until the initial TGE airdrop is fully completed. Additionally, generally state the possible target user segments (e.g., "stakers of X," "Aave users") and the allocation method (e.g., proportional to ve-balance or net position).
- (b) Executed airdrop — If the project has already airdropped, point to a per-address source such as CSV/TSV/JSON files, a Dune table, a full Merkle dump, GitHub repo files embedding per-address allocations, or RPC endpoints that expose claim/amount data; explorer links alone do not count. Additionally, clearly state covered user segments (e.g., "stakers of X," "Aave users") and the allocation method (e.g., proportional to ve-balance or net position).
- (c) No airdrop planned or conducted — If the project does not plan to conduct an airdrop for TGE and has never conducted one, state so plainly (e.g., "We have never conducted an airdrop to date and do not plan to execute one").
- Planned but not yet executed airdrop: This sub-item does not apply. Rain completed its initial TGE airdrop distribution. Claims for the RAIN token airdrop opened on February 10, 2026 alongside the token generation event on Arbitrum, and the beta points program that determined eligibility closed at the end-of-beta snapshot. (Source: BingX Airdrop Announcement, Pre-Season Raindrop Announcement)
- Executed airdrop: Rain executed its TGE airdrop through the Raindrops beta points program. The covered user segments are participants in the Rain beta, which launched on November 6, 2025, who completed at least one core action consisting of depositing funds, trading, creating markets, adding liquidity, or referring users. Bonus Raindrops earned solely for following Rain on X did not qualify a wallet for the airdrop. The allocation method distributed a fixed allocation of RAIN from total supply split proportionally among all participants based on each participant's relative share of total Raindrops earned at the end-of-beta snapshot. The referral program applied one fixed rule. When a referred user signed up and deposited at least $5, both the referrer and the invited user received 1,000 Raindrops. Rain has not published a per-address recipient source for the executed airdrop. No CSV, TSV, or JSON file, Dune table, Merkle dump, GitHub repository with per-address allocations, or public RPC endpoint exposing claim and amount data has been disclosed. (Source: The Raindrops System, Pre-Season Raindrop Announcement, BingX Airdrop Announcement)
- No airdrop planned or conducted: This sub-item does not apply. Rain conducted a TGE airdrop through the Raindrops program. (Source: The Raindrops System)
Blockworks note: Full scoring credit for executed airdrops requires a per-address source. Rain has not published one, and the Raindrops points ledger that determined allocations is held off chain by the Rain team.
Transactions & Market Structures
Market Maker Agreements & Deals
Projects must disclose all material terms of market-making arrangements that affect token liquidity. If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. For each market maker, include in a table:
- (a) Market maker's name — the market maker's name;
- (b) Token allocation or loaned amount — the token allocation or loaned amount as a percentage of total supply;
- (c) Duration/term of agreement — the duration/term of the agreement; and, where applicable,
- (d) Name of agreement structure — label the financial vehicle being used in the agreement (i.e. loan, option/call, retainer model) without describing trading strategy or expected outcomes.
If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. If no native tokens were loaned or allocated to market makers, state that explicitly; cash/fiat retainers or fees are not required for this item.
Blockworks note: Rain has not publicly disclosed any market-maker agreements or deals in cited sources.
(Source: White Paper)
CEX / DEX Agreements & Deals
Projects must disclose all material terms of centralized or decentralized exchange listings that affect token liquidity. For each listing, include in a table:
- (a) Exchange name / DEX pool — the exchange name (and, for DEX, the specific pool/pair);
- (b) Token allocation for listing — the token allocation supplied or committed for listing as a percentage of total supply;
- (c) Term Duration — the duration/term of any listing lockups, liquidity, or incentive programs; and, where applicable,
- (d) Native-token listing fees — whether any listing fees were paid in native tokens, with amounts (tokens or % of supply), recipients, and any vesting or lock terms tied to the partnership.
If the project has no agreements or deals with CEX or DEX, state that explicitly; doing so earns full credit; cash/fiat fee amounts are not required for this item.
Blockworks note: The White Paper identifies trading platforms as Kraken, KuCoin, MEXC, BingX, BitMart, WhiteBit, Lbank, XT, Bitrue, BloFin, and Gems Trade. Rain has not publicly disclosed token-allocation, term-duration, or native-token listing-fee details for these venues in cited sources.
(Source: White Paper)
Financial Disclosures & Risks
Prior Token Sales & Fundraising
Disclose all prior token sales by the Project — including fundraising rounds, any material OTC sales to investors, and any discounted market-maker sales. For each sale, provide:
- (a) Series Name
- (b) Early-Stage Investment Instrument used (i.e. SAFT, STAMP, SAFE, SAFE+Token Warrant, etc.)
- (c) Date of sale (at least month & year)
- (d) Number of tokens sold (or % of total supply)
- (e) Vesting schedule
If no prior sales occurred, state that explicitly (e.g., "No prior fundraising, OTC, or discounted MM sales have occurred.").
Blockworks note: Rain conducted institutional and public token sales before admission to trading, but has not publicly disclosed the specific instruments, exact sale dates, or a token-count breakdown in cited sources. The White Paper states that allocations were subject to vesting and lock-up schedules with release schedules ranging from 6 to 24 months, and that team, strategic partners, and presale participants are subject to predefined lockup and linear vesting.
(Source: White Paper)
Previous Exploits Affecting The Native Token
If any, list prior exploits or incidents that directly affected the token, token supply, tokenholder balances, token contract, minting controls, burn mechanics, or custody of token supply. This question is not asking about general protocol, application, or smart contract exploits unless the incident directly affected the native token itself. If no prior incidents, state this explicitly (e.g., "No exploits affecting tokenholders or protocol funds as of YYYY-MM-DD").
- (a) Date & component affected — Date (YYYY-MM or YYYY-MM-DD), chain(s)/component affected.
- (b) Exploit vector summary — Plain-language summary of the exploit vector (what the hack was).
- (c) Quantified impact — Quantified impact (assets/tokens affected or a clear "no loss of funds" statement).
- (d) Remediation/response taken — Remediation/response taken (patches, upgrades, governance actions, compensation).
- (e) Current status — Current status (resolved, in litigation, under investigation, refunded, etc.).
- (f) References (optional) — References (optional): link(s) to post-mortem/advisory/PR.
(a) Date & component affected
Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources.
(b) Exploit vector summary
Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources.
(c) Quantified impact
Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources.
(d) Remediation/response taken
Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources.
(e) Current status
Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources.
(f) References (optional)
Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources.
Blockworks note: Rain has not publicly disclosed any exploit, hack, or security incident affecting the RAIN token in cited sources. The RAIN token smart contract passed a Hacken security audit that identified no critical or high-severity vulnerabilities and resolved minor informational observations prior to deployment.
(Source: White Paper, Hacken Audit)
Material Risk Factors (Regulation, Technology, Token Economics)
Describe material risk factors across the three categories below. Each category includes prompts to address at a minimum.
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(a) Regulatory, Legal & Tax Risks — Describe how evolving laws and regulations could affect the project by answering, at a minimum, questions like:
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Impact of Regulatory Change on TGE and Listings: (If applicable) How could evolving or conflicting laws and regulations affect your ability to complete the TGE, deliver tokens to purchasers, and list or maintain the token on trading venues in key jurisdictions?
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Entity-Level Regulatory Impact: (If applicable) How could regulatory or legal changes impact your core entities (Foundation, DevCo, DAO, affiliated service providers), including enforcement actions, licensing requirements, or forced changes to structure or operations?
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Tokenholder Tax Treatment: (If applicable) What uncertainties exist around how tokenholders may be taxed, and make clear that tokenholders are responsible for understanding their own tax obligations?
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Jurisdictional & User Access Restrictions: (If applicable) If the project restricts access for certain jurisdictions or user types (e.g., U.S. persons, sanctioned countries, retail vs. professional), what are those restrictions and what risks do they create for users and for the project?
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(b) Protocol, Technology & Security Risks — Describe risks to network and contract reliability, correctness, and safety by answering, at a minimum, questions like:
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Bugs and Design Flaws: (If applicable) What bugs, design flaws, or implementation errors could exist in your core protocol code, smart contracts, and any bridges, rollups, or oracles that you depend on, and how could these lead to loss of funds or disruption of the protocol?
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Security Measures & Their Limitations: (If applicable) What security measures have you taken (audits, formal verification, bug bounties), and what types of failures might these measures still fail to detect or prevent?
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(c) Token Economics, Unlocks & Incentive Risks — Describe how the token's economic design and supply schedule could affect holders by answering, at a minimum, questions like:
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Critical Economic Assumptions: (If applicable) Which economic assumptions (e.g., staking yields, fee revenue, liquidity incentives, MEV capture, demand for blockspace) are critical for protocol security, utility, and governance, and what happens if those assumptions fail?
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Governance Control over Monetary Policy & Rewards: (If applicable) To what extent can governance change monetary policy, fee parameters, or reward allocations (e.g., inflation rate, treasury flows, incentive programs), and how could such changes adversely affect tokenholders?
(a) Regulatory, Legal & Tax Risks
The White Paper states that no new public offer is currently being made, that any future public offer would require a separate or modified white paper, and that the existing disclosure relates to prior public distribution and current admission to trading. The issuer is a non-EU Panamanian foundation, legal claims fall under Panamanian law and courts, and changes in regulatory treatment, local law, or issuer structure could impair the issuer's ability to support the protocol. Purchasers remain responsible for complying with legal and tax obligations in their own jurisdictions. Rain has not disclosed specific jurisdiction-based user-access restrictions in cited sources.
(Source: White Paper)
(b) Protocol, Technology & Security Risks
Public sources identify several protocol and implementation risks. The White Paper highlights smart-contract bugs, oracle or market-resolution errors, bridge and interoperability failures, Arbitrum or Ethereum network dependency, third-party infrastructure dependency, and cross-chain transfer risks. Rain combines AMM liquidity pools with order-book trading, and disputed outcomes move through a one-hour challenge window, Lex AI review, and possible escalation to decentralized human oracles, which creates additional correctness, liveness, and coordination risk around outcome resolution and liquidity conditions. Security measures are a completed Hacken token audit, publicly verifiable contracts on Arbiscan, and a protocol-level audit underway. The public record is internally inconsistent. The White Paper states that the token contract is non-upgradeable, while the Hacken audit scope describes an upgradeable proxy token whose owner can control minting, oracle configuration, treasury updates, and upgrades.
(Source: White Paper, Hacken Audit, About the $RAIN token)
(c) Token Economics, Unlocks & Incentive Risks
RAIN's public economic design depends on sustained market activity and functioning incentive flows. 5% of market-volume fees are split across creators, liquidity providers, resolvers, and buyback-and-burn, while 10% of burned tokens are re-minted and allocated to the Foundation through the Rain team. Allocations are subject to vesting and lock-up schedules, with categories including presale, strategic sale, contributors, advisors, team, marketing and development funds, liquidity providers, ecosystem growth, and reserves, and with release schedules ranging from 6 to 24 months. A further 2% of the Ecosystem Growth and Staking allocation, equal to 23 billion tokens, is earmarked for Raindrops rewards over a 12-month linear vesting schedule. Public sources conflict on governance and token-utility status. Current documentation describes active tokenholder proposal and voting rights and one token page states that RAIN is required for market participation, while the White Paper states that governance rights were not yet exercisable at admission and that RAIN is not required to trade, deposit, or create markets.
(Source: White Paper, About the $RAIN token, The Raindrops System)
This Token Transparency Filing is provided for general informational purposes only and does not verify or warrant the accuracy of individual answers.
