Rain Protocol represents a significant advancement in decentralized prediction markets by eliminating intermediaries, pioneering private markets, and integrating advanced AI-human resolution mechanisms. Its sustainable tokenomics, builder-oriented toolkit, and commitment to transparency position it strongly within the growing prediction sector. With increasing adoption, Rain is poised to serve as foundational infrastructure for on-chain forecasting, enabling global communities and innovators to harness collective intelligence in an open, equitable manner.
Prediction markets have surged in popularity as effective mechanisms for harnessing collective wisdom on future events, ranging from major elections to specialized community outcomes. Centralized platforms often impose restrictions on market creation, suffer from resolution opacity, and experience prolonged settlement times. Rain Protocol addresses these issues as a fully decentralized infrastructure layer. Its public beta launched in November 2025, establishing it as the "Uniswap of prediction markets" with permissionless market deployment, AI-assisted resolutions, and support for both public and private markets.
Built primarily on Arbitrum with cross-chain capabilities, Rain promotes transparency, scalability, and community-driven innovation. As of early February 2026, the protocol maintains a Total Value Locked (TVL) of approximately $3.96 million on Arbitrum, with cumulative trading volume exceeding $18 million and over 28,000 active users, reflecting steady post-launch growth in the sector that has seen centralized platforms surpass billions in volume.
What Is Rain Protocol (RAIN)?
Rain Protocol serves as a decentralized infrastructure for building and operating prediction markets on any conceivable event. It provides developers and communities with SDKs, APIs, and smart contracts to launch custom marketplaces, differing from centralized end-user applications. Markets utilize an automated market maker model, with trading and settlement primarily in stablecoins like USDT. The protocol enables permissionless creation of public markets accessible to all, alongside private, invite-only markets tailored for DAOs, projects, or exclusive groups.
Outcomes are determined through a hybrid oracle system combining AI consensus for efficiency with escalation paths to human oversight for disputes, ensuring accuracy and resistance to manipulation. Since its beta launch on November 6, 2025, Rain has processed over 23,000 on-chain transactions and burned approximately 69 million $RAIN tokens through its deflationary mechanisms.
Learn more about how to claim Rain Protocol airdrop in our detailed guide.
What are the Key Features of Rain Protocol?
Rain's permissionless framework allows users to create markets with low barriers and minimal initial liquidity. Private markets enable novel applications, such as internal forecasting for organizations. The hybrid oracle leverages multiple AI models for automated public resolutions, with disputes progressing to an AI judge and, if necessary, decentralized human oracles.
Additional features include revenue sharing for creators and liquidity providers, integration of community-native tokens, shared liquidity mechanisms, and RNG tools for enhanced functionality. A $5 million grants program supports builders, while monetization incentives align ecosystem growth with participant rewards. These elements contribute to the protocol's on-chain activity, with total trading volume reaching around $18.38 million and ongoing burns reducing token supply to enhance scarcity.
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Who Created Rain Prediction Market?
Rain Protocol was developed by a dedicated team of blockchain engineers specializing in secure, scalable DeFi solutions. Muhammad Wasif, serving as Chief Technology Officer (CTO), has played a pivotal role in designing the core smart contracts, oracle integrations, and multi-chain architecture, drawing on expertise in Solidity and Rust.
The project emphasizes genuine decentralization through community governance and collaborative development, with ongoing contributions from builders via grants and DAO mechanisms. Institutional interest has grown, highlighted by events such as Nasdaq-listed Enlivex Therapeutics' $212 million private placement in late 2025 to accumulate $RAIN for a prediction markets-focused treasury strategy.
What Is the RAIN Token Used for in the Rain Protocol Ecosystem?
The $RAIN token functions as the native utility and governance asset within the Rain ecosystem. Although markets primarily use stablecoins like USDT for trading and settlement, holding $RAIN is required for participation, as it grants "Trading Power" that scales access to deposited funds (for instance, enabling leveraged-like trading without traditional borrowing).
In the evolving protocol, $RAIN enables DAO voting on parameters such as fees, oracle settings, upgrades, and ecosystem allocations, fostering direct user influence and long-term token demand tied to platform activity. As of February 2026, $RAIN trades around $0.010, with a circulating supply of approximately 340 billion tokens out of a maximum supply of 1.15 trillion.
What Are the Tokenomics of Rain (RAIN)?
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Rain's tokenomics incorporate balanced deflationary and inflationary elements for long-term viability. The initial total supply stands at 1.15 trillion tokens, with circulating supply around 340 billion (about 30% unlocked), distributed across categories including team, ecosystem growth and staking, marketing, development, treasury, and others, often with vesting periods.
A key deflationary feature allocates 2.5% of trading volume to automatic buyback and burn of $RAIN, reducing supply as protocol usage grows, resulting in over 69 million tokens burned to date. This is offset by controlled inflation (such as minting 10% of burned amounts) directed toward rewards, development, marketing, partnerships, and community initiatives.
Additional protocol fees contribute to a structure rewarding market creators, liquidity providers, and resolvers. The token's market cap hovers around $3.5-3.6 billion, with 24-hour trading volume frequently exceeding $35-40 million, and a fully diluted valuation near $11-12 billion, reflecting strong market interest amid scheduled unlocks in 2026.
How to Trade RAIN Perpetuals on BingX Futures: Step-By-Step Guide
RAIN/USDT perpetuals on the futures market
BingX is a user-friendly centralized exchange that supports RAIN trading with pairs like RAINPROTOCOL/USDT (or RAIN/USDT) and offers tools for efficient purchases. Amid the hype surrounding Rain Protocol's decentralized prediction markets, the $RAIN token is already listed on major centralized exchanges, including BingX, where users can trade RAIN/USDT perpetuals in the futures market. Follow these steps to trade RAIN securely:
Step 1: Create and Fund Your BingX Futures Account
Sign up on BingX and complete identity verification. Deposit USDT into your account and transfer your funds into your Futures Wallet.
Step 2: Open the Futures Trading Interface
Go to Futures and go to USDT-M Contracts. Select the RAINUSDT perpetual futures contract pair available on BingX
Step 3: Choose Long or Short
• Go long if you expect RAIN prices to rise, owing to inflation, rate cuts, geopolitical risk, etc.
• Go short if you expect RAIN prices to fall due to rate hikes, stronger USD, etc.
Step 4: Set Leverage and Order Type
Adjust leverage based on your risk tolerance. Choose market order for instant execution or limit order for a specific price entry.
Step 5: Manage Risk
Always use stop-loss (SL) and take-profit (TP). Monitor margin levels to avoid liquidation. This approach mirrors traditional RAIN futures trading, but with crypto-native speed, leverage, and flexibility.
4 Key Considerations Before Trading RAIN Perpetual Futures
Before engaging in futures trading, traders must carefully weigh several critical factors to protect capital and maintain long term sustainability in this high risk environment. Market downturns can rapidly impact even well managed positions, as sharp price corrections of 20 to 30% in 24 hours or black swan events often lead to widespread liquidations totaling billions in notional value across the ecosystem within minutes.
Trading crypto futures offers flexibility and higher capital efficiency, but it also introduces risks that spot traders never face. Strong risk management is what separates successful futures traders from those who get liquidated.
1. Position Sizing: Your position size should match your account size and risk tolerance. For instance, if you have $1,000, risking 2% per trade means a maximum loss of $20. With 5x leverage, you would open a position worth $100, not your entire account. Start small and scale only when your strategy is proven.
2. Stop-Loss and Liquidation Awareness: Future traders must always know where liquidation sits. Setting a stop-loss before entering the trade prevents unexpected wipeouts. On BingX, using Isolated Margin keeps risk limited to that single position, while Cross Margin uses your entire balance, better for experienced traders.
3. Funding Rates and Market Volatility: Perpetual futures include funding rates paid between long and short traders. Positive funding means you pay to stay long; negative funding means you pay to stay short. Understanding this cost helps you avoid holding losing positions during volatile periods. Sudden wicks can trigger liquidations, so protect entries with clear exit levels.
4. Avoiding Over-Leverage: High leverage magnifies small price moves. For example: A 1% move against you at 20x leverage equals a 20% loss. Stick to moderate leverage, 2x to 5x, especially when learning. Let skill, not leverage, drive profits.
BingX provides built-in tools like isolated margin, stop-loss orders, take-profit zones, and liquidation alerts to help traders manage risk effectively. Responsible position sizing limited to 1 to 2% of total capital per trade, strict use of stop loss orders set at logical technical levels, and ongoing education through platform analytics and market research remain non-negotiable for anyone participating in crypto futures to achieve sustainable outcomes.
Conclusion
Rain Protocol advances decentralized prediction markets by eliminating intermediaries, pioneering private markets, and integrating advanced AI-human resolution mechanisms. With a TVL of roughly $4 million, cumulative volume over $18 million, more than 28,000 active users, and a robust deflationary burn mechanism that has already destroyed tens of millions of tokens, its sustainable tokenomics, builder-oriented toolkit, and commitment to transparency position it strongly within the growing prediction sector. As adoption increases amid institutional backing and sector momentum, Rain is poised to serve as foundational infrastructure for on-chain forecasting, enabling global communities and innovators to harness collective intelligence in an open, equitable manner.