Our token, the Raindrop, an ERC-20 native token (RDP), is designed as a purely demand-driven utility token. Buyers of Real-time Social Intelligence (RSI) use RDP to pay for insights, which are then distributed among data creators, validators, and token investors. Algorithms manage the automatic allocation of Raindrops to data creators, distributed storage nodes, and compute providers for providing data and services. Whether businesses buy the RDP from the market, users, or as a last resort from the Rainfall Treasury, their purchase cost is the same. This creates both a circular economic system and market dynamics that aren’t solely dependent on Investor demand and sentiment.
Token supply is dynamically tied to system growth: as demand for intelligence increases (driven by more data and users), existing tokens are prioritized for use before any new supply is created. This ensures a demand-focused economic model, avoiding the pitfalls of traditional supply-driven systems.
RDP tokens are used for various transactions in the Rainfall ecosystem, including purchasing Real-time Social Intelligence (RSI), paying data creators for their contributions, and compensating validators and other ecosystem participants.
Users can stake RDP tokens to support the security and operation of the Rainfall system. In return, they earn rewards, including staking interest and participation in the Distribution of Value from ecosystem’s operations.
The RDP token powers Rainfall’s circular economic system. It ensures equitable distribution of value to data creators, storage nodes, compute providers, and participants who contribute to the ecosystem’s operations.
Algorithms manage the automated allocation of RDP tokens, balancing ecosystem demand and supply. The system incorporates minting and burning mechanisms based on Net Ecosystem Activity to prevent inflation or oversupply.
Table of Contents
For an in-depth understanding of Rainfall's tokenomics, governance, and reward systems, please refer to the Rainfall Monetary Policy and Tokenomics document.