Decentralized protocol Rain has begun public beta, positioning itself as the “Uniswap of prediction markets” that directly competes with centralized incumbents. This release introduces a permissionless model that allows anyone to create markets, and includes private community-specific predictive markets for the first time. Think of it as a “Youtube-style” platform where anyone can upload videos, while centralized competitors act as “Netflix-style” curated systems.
Rain’s arrival is timely, landing as the prediction markets sector is experiencing explosive growth, with centralized platforms such as Polymarket and Kalshi recently surpassing a staggering $7.4 billion in trading volume. The surge is due in part to U.S. regulators granting these companies licenses to operate earlier this year.
The current intensive practices of the prediction market industry have led to widespread user dissatisfaction with the limited scope of available markets, lack of transparency in how results are determined, and significant delays in manual payments. In contrast, Rain’s open protocol allows for the creation of markets for any event, from global elections to niche community milestones, without the need for approval from a central gatekeeper.
The most important innovation of this protocol is the introduction of a private market. This feature enables entirely new use cases, allowing DAOs, crypto projects, or private groups to predict internal events, track project milestones, and engage communities in an invite-only environment.
Muhammad Wasif, CTO of Rain, said: “What really sets us apart is the introduction of private markets, unlocking new possibilities for niche and community-specific predictions.”
To manage outcome resolution at scale, Rain leverages a new hybrid oracle engine. Public market outcomes are first determined by the consensus of multiple independent AI models. If this automated outcome is contested, the case is automatically escalated to an AI “judge” who issues a second judgment. Only if that judgment is also challenged will the dispute move to a final and binding decision by a decentralized human oracle. In the new private market, creators resolve outcomes directly, but the same powerful AI and human conflict mechanisms serve as a critical backstop.
The protocol’s ecosystem is powered by the native $RAIN token. Although the market is powered by the stablecoin USDT, holding $RAIN is mandatory for participation and access to trading options, making it the core utility of the token. The platform’s tokenomics are designed with balance in mind, featuring a deflationary 2.5% buy-and-burn mechanism that funds from trading volume, offset by inflationary issuance to reward investors and fund ecosystem growth.
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