A Valuation of RAILGUN

Key Insights

• RAILGUN is an onchain ZK privacy tool for EVM-compatible networks, allowing users to transact without publicly revealing wallet identity, balances, or transaction intent.
• RAIL’s value accrues through protocol fees and treasury distributions to stakers. RAILGUN charges a 0.25% fee on shielding and unshielding transactions. Fees accrue onchain to the DAO treasury, with 2% of treasury balances distributed to RAIL stakers every two weeks.
• We model RAILGUN TVL as a rising share of Ethereum market cap and stablecoin supply, with protocol revenue driven by penetration into this capital base and declining fee capture as users increasingly retain assets inside the privacy set.
• The Kohaku wallet SDK is the primary adoption catalyst. By integrating RAILGUN, Kohaku expands wallet-level distribution and increases the share of Ethereum capital that can access private balances through default wallet flows.
• Discounted intrinsic value implies $0.37 (bear), $6.26 (base), and $16.36 (bull) per RAIL. These outcomes reflect a range of adoption and pricing assumptions, with upside driven by broader wallet integration and re-rating as the default privacy infrastructure.