Rain Chain / Token
RAIN secures the chain and burns with use.
RAIN is native on Rain Chain and moves to Arbitrum One by burn-and-mint, with one global supply. It pays for gas, secures consensus through staking, and bonds resolution.
Utility
What RAIN does on Rain Chain
Gas
RainEVM gas is paid in RAIN. The EIP-1559 base fee is burned; the priority fee goes to the proposer. Trading on RainCore is gasless.
Staking & security
Validators self-bond RAIN and delegators stake to them. Consensus voting power is stake-weighted.
Resolution bonds
Proposals, disputes and appeals are bonded in RAIN; losing bonds are half burned, half paid to the winning challenger.
Settlement & governance
Settlement token for RAIN-denominated markets and the asset that votes on parameter changes. Not used as leverage margin in v1.
Supply
One global supply across two chains
S0 = 1,142,408,474,514 RAIN (18 decimals). Arbitrum supply + Rain Chain supply always equals the global supply: S(t) = S0 + protocol inflation − burns. Validators check this invariant at every checkpoint; any breach pauses RAIN bridging automatically.
- Staking Rewards Reserve: 114.24B RAIN of existing supply moves into a genesis module account and is released to stakers per block. Releases don't raise total supply.
- Protocol inflation: 0.50% per year in years 1–4, 1.00% per year from year 5, minted per block. The step-up replaces the declining reserve so the security budget never falls off a cliff.
- Later (Phase 3): governance may enable a ±0.25 pp yearly adjustment targeting a 50% staking ratio. Until then inflation is fixed.
Issuance schedule
Rewards to stakers, by year
Reserve release (existing tokens) plus newly minted inflation, in billions of RAIN — before any burn.
| Year | Reserve release (% S0) | Inflation (% supply) | New supply minted | Supply end of year |
|---|---|---|---|---|
| 1 | 2.00% | 0.50% | 5.71B | 1,148.12B |
| 2 | 1.75% | 0.50% | 5.74B | 1,153.86B |
| 3 | 1.50% | 0.50% | 5.77B | 1,159.63B |
| 4 | 1.25% | 0.50% | 5.80B | 1,165.43B |
| 5 | 1.00% | 1.00% | 11.65B | 1,177.08B |
| 6 | 1.00% | 1.00% | 11.77B | 1,188.85B |
| 7 | 0.75% | 1.00% | 11.89B | 1,200.74B |
| 8 | 0.75% | 1.00% | 12.01B | 1,212.75B |
| 9 | 0.00% | 1.00% | 12.13B | 1,224.88B |
| 10 | 0.00% | 1.00% | 12.25B | 1,237.13B |
Supply figures exclude burns.
Fees & burn
Usage removes RAIN from supply
Burn sources:
- Buy-and-burn: 35% of protocol trading fees buy RAIN on the native RAIN/USDT book via TWAP and burn it.
- EVM base fees: all RainEVM base fees are burned.
- Lost bonds and slashing: half of every losing resolution bond and all slashed stake are burned.
- Listing auctions (Phase 3): 100% of spot-listing auction proceeds are burned.
The specification models year-1 net inflation at 0.18%–0.50% depending on trading volume (scenarios from $50M to $5B per month). These are model scenarios, not forecasts.
Bridge
Burn-and-mint for RAIN, lockbox for stablecoins
Depositing RAIN burns it on Arbitrum and mints the same amount on Rain Chain. Withdrawing burns it on Rain Chain and, after the withdrawal delay, mints it on Arbitrum through a bridge-only function. No RAIN sits in a lockbox, so there is no RAIN honeypot.
- Token upgrade: the Arbitrum RAIN implementation gains a
bridgeMintcallable only by the bridge, with balances and ERC-20 behaviour unchanged. It must be audited, run behind a ≥ 7-day timelock, and announced to integrators in advance. - Mint caps in the token itself: 0.1% of S0 per hour and 0.5% per 24 h at launch, so even a compromised bridge cannot mint unbounded RAIN.
- Withdrawals: ≥ 2/3 of validator stake must sign, then a size-based delay from 3 minutes to 24 hours applies.
- Stablecoins: USDT and USDC sit in a lockbox with outflow caps of 5% per hour and 20% per 24 h, and a $25M deposit cap during beta.
Staking yield
Yield depends on how much is staked
Year-1 gross issuance to stakers is about 2.5% of supply. The APR each staker sees depends on the staking ratio — and validators keep commission on delegated rewards. Token-denominated, before commission, excluding the stablecoin fee share:
| Staking ratio | Bonded RAIN | APR year 1 | APR year 5 | APR year 9 |
|---|---|---|---|---|
| 10% | 114.24B | 24.88% | 19.61% | 9.90% |
| 30% | 342.72B | 8.29% | 6.54% | 3.30% |
| 50% | 571.20B | 4.98% | 3.92% | 1.98% |
| 70% | 799.69B | 3.55% | 2.80% | 1.41% |