The RAIN token is the digital token used in the Rain protocol, a decentralized prediction markets protocol that provides AI-ready infrastructure for builders to launch their own forecasting platforms and is intended, in a later phase of development, to provide holders with governance rights through a decentralized governance system (DAO). The activation of DAO governance is planned for a future phase of development. The timing and scope of such governance are not yet finalized and may be subject to change depending on technical, operational, and governance considerations. RAIN does not give ownership, profit, or rights to any goods or services. A share of trading fees is used to buy back and destroy tokens, while limited new tokens may be issued to fund development and community rewards. All major changes will be decided by token holders once DAO governance becomes active.

Rain is a decentralized protocol for creating and participating in prediction markets. It operates on the Arbitrum blockchain and allows users to define event outcomes, provide liquidity, and trade positions related to those outcomes. The protocol uses an automated market maker (AMM) mechanism to continuously determine prices based on the proportion of liquidity allocated to each outcome. Market outcomes may be resolved either by the market creator or, in certain public markets, by an Al-based oracle system. A dispute mechanism exists which may escalate contested outcomes to human oracles. Rain also supports the creation of incentive-based markets, where economic rewards can be attached to the realization of specific real-world outcomes rather than solely to prediction.