Rain Protocol has completed the final step of its first DAO governance and settlement. Following community approval of the proposal, the Rain Foundation invested $23 million in USDT to repurchase the remaining locked Credit Refund allocations. With the claim window now closed, the protocol has permanently burned approximately 7.419 billion RAIN tokens acquired through this settlement.
$23 million allocated for repurchase lock-up quota
This settlement stems from Rain’s internal review of the Credit Refund project. The foundation stated that some participants circumvented the $5,000 per-user cap by using multiple wallets, resulting in an increased number of claimable tokens and additional selling pressure on the secondary market.
Rain did not internally decide how to handle the matter but instead submitted the proposal to token holders for a vote. This marks the first time the protocol has resolved such a dispute through a DAO vote.
- Rain Foundation commits to investing $23 million in USDT.
- The fixed exchange rate is $0.0031 per RAIN.
- The team-controlled wallet and allocated shares did not participate in the vote.
7.4 billion RAIN tokens have been permanently removed from circulation.
After community approval of the settlement agreement, all RAIN repurchased through this process were required to be permanently removed from circulation. With the claim period now concluded, Rain has completed this step.
A total of 7,419,354,838 RAIN tokens were burned, representing 1.035% of the circulating supply. At the time of burning, this portion of tokens had a value of approximately $108 million. After the burn, the circulating supply of RAIN decreased to 709,173,225,165 tokens.
The article states that this burn transaction was completed directly on-chain and can be independently verified by external parties, without relying solely on the foundation's statements to confirm whether the settlement has been executed.
The governance outcome has attracted market attention.
This incident evolved from a dispute over abnormal credit refund claims into a complete execution process involving community voting, foundation funding, and on-chain destruction. Roy Shaham, CEO of Rain Protocol, stated that the community made the decision, the foundation provided the funding, and the destruction ensured that the outcome could be publicly verified.
Since the settlement plan was approved, the RAIN price has risen approximately 20%, drawing increased market attention to this governance outcome. For DeFi protocols, the focus of such events is no longer just on whether a vote passes, but also on whether community decisions can be effectively implemented through fund allocation and on-chain execution.