Rain Protocol has completed the final step of its first DAO governance and settlement process. Previously, after the proposal was approved by the community, Rain Foundation invested 23 million US dollars USDT to repurchase the remaining locked-up Credit Refund quotas. With the closure of the application window, approximately 7.419 billion RAIN tokens obtained through this settlement will be permanently destroyed.
$23 million is used for the repurchase of locked-up quotas.
This settlement stems from an internal review of the Rain project by Credit Refund. The foundation stated that some participants bypassed the quota limit of $5,000 per user by using multiple wallets, which led to an increase in the number of tokens that could be claimed and also put additional pressure on the secondary market.
Rain does not decide on the handling method internally, but submits the proposal to the token holders for a vote. This is also the first time that such disputes have been resolved through DAO voting in this protocol.
- Rain Foundation commits to investing $23 million USDT
- Fixed exchange rate is 0.0031 US dollars per RAIN.
- The team controls the wallet and its share ownership, but did not participate in the voting.
7.4 billion RAIN coins have been permanently removed from circulation.
After the community approved the settlement plan, all RAIN that were repurchased through this process were required to be permanently removed from circulation. With the end of the application period, Rain has completed this step.
The total number of tokens to be destroyed this time is 7,419,354,838 RAIN, which accounts for 1.035% of the circulating supply. Calculated at the price at the time of destruction, the value of these tokens is approximately 108 million US dollars. After the destruction is completed, the circulating supply of RAIN will drop to 709,173,225,165 tokens.
The article states that this destruction transaction was completed directly on the blockchain, and it can be independently verified by external parties without having to rely solely on the foundation's confirmation to verify whether the settlement has been fully executed.
Governance outcomes attract market attention.
This incident started with a dispute over an abnormal claim from Credit Refund, and ultimately evolved into a process involving community voting, funding by a foundation, and on-chain destruction, forming a complete execution workflow. Rain Protocol's CEO, Roy Shaham, stated that the community made the decision, the foundation was responsible for providing the funds, and the destruction ensured that the execution results could be publicly verified.
Since the settlement plan was approved, the price of RAIN has risen by approximately 20%, drawing more market attention to this governance outcome. For the DeFi protocol, the focus of such events is no longer just on whether the vote is passed or not, but also on whether the community's decisions can truly be implemented in terms of funding arrangements and on-chain execution.
