What is Rain (RAIN)?

By CMC AI
02 February 2026 07:14AM (UTC+0)
TLDR

Rain (RAIN) is a fully decentralized prediction markets protocol built on Arbitrum, designed to let anyone create and trade custom markets on any future event.

  1. Core Purpose – It functions as a permissionless "Uniswap for prediction markets," enabling users to forecast outcomes on everything from global events to niche scenarios.

  2. Key Technology – The protocol uses an Automated Market Maker (AMM) for liquidity and integrates an AI oracle named Delphi for impartial, data-driven resolution of public markets.

  3. Token & Governance – The $RAIN token is required to access the platform, grants governance rights in the Rain DAO, and features a deflationary buyback-and-burn mechanism fueled by trading fees.

Deep Dive

1. Purpose & Value Proposition

Rain aims to democratize forecasting by solving the limited accessibility of traditional prediction markets. Its core value is a permissionless framework where anyone can create a market in seconds without approvals. This opens forecasting to events of any scale, from presidential elections to community-specific outcomes. The protocol is designed to transform predictions into tradable assets, enhancing collective accuracy and allowing users to financially incentivize desired real-world outcomes.

2. Technology & Architecture

Built on Arbitrum, Rain employs an Automated Market Maker (AMM) system. This manages liquidity and dynamically prices shares based on the proportion of total funds wagered on each outcome, ensuring continuous market equilibrium. For resolution, creators can choose between self-resolution or an integrated AI oracle (Delphi). Delphi uses a multi-agent consensus system to gather and verify information from the internet, aiming for objective answers. A built-in dispute process, involving an AI judge and human oracles, provides a layer of arbitration.

3. Tokenomics & Governance

The $RAIN token is central to the ecosystem. It provides Trading Power, determining how much of a user's deposited funds can be actively traded based on their $RAIN holdings. Furthermore, $RAIN holders govern the protocol through the Rain DAO, voting on upgrades, fees, and partnerships. The tokenomics include a powerful deflationary mechanism: 2.5% of every market's trading volume is used to buy back and burn $RAIN tokens, creating scarcity tied directly to protocol usage.

Conclusion

Rain is fundamentally a decentralized infrastructure layer that makes prediction markets accessible, liquid, and community-governed. How will its permissionless design and AI-integrated resolution shape the future of collective forecasting?

CMC AI can make mistakes. Not financial advice.