Resolution on the Credit Refund Claims Program and $RAIN Market Protection

Executive Summary:

This binding governance proposal is submitted to the Rain DAO to determine the definitive path forward regarding the suspended $RAIN Credit Refund claims program on Gems Launchpad.

Following the discovery of coordinated abuse of the Credit Refund system, including the use of multiple accounts and wallets to bypass participation limits, the Credit Refund program was temporarily suspended in coordination with Gems Launchpad in order to protect the interests of legitimate $RAIN token holders and mitigate the severe artificial sell pressure caused by this activity.

Important: To ensure full decentralization and community sovereignty, the Rain Foundation will not participate in this vote and will not utilize any team-controlled voting power. The final decision is entirely in the hands of the Rain community.

Background & Situation Analysis:

The $RAIN tokenomics were structured to support long-term ecosystem growth, sustainable community participation, and a healthy token economy. During the launch phase, Rain participated in several early distribution programs that created three primary participant groups:

• Mercury Miner Purchasers (subject to the “Miner Momentum” vesting schedule)

• Private Sale Participants

• Credit Refund Participants (users who exchanged previously held credits for $RAIN)

The Credit Refund program was originally designed with a strict maximum participation limit of $5,000 per user.

Following an internal review and coordination with Gems Launchpad, the Rain team identified coordinated manipulation of the Credit Refund system involving participants who created and operated multiple accounts and wallets in order to bypass these limitations and obtain allocations materially exceeding the permitted amount.

This activity violated the intended rules and terms of the Credit Refund process and resulted in significant artificial sell pressure on the $RAIN token, negatively impacting the broader community, token holders, and the long-term health of the protocol.

To protect the ecosystem and prevent further damage, the Rain Foundation and Gems Launchpad temporarily suspended the Credit Refund claims contract pending DAO review and community governance.

Important Clarification: This suspension does not affect users who participated through the Mercury Miner or Private Sale programs. Those contracts remain fully operational and unaffected.

The Core Dilemma:

The Rain DAO must now balance two legitimate but conflicting priorities:

The Holders’ Perspective: The protocol has experienced severe artificial market pressure caused by coordinated abuse of the Credit Refund system. This activity damaged the token’s market structure, harmed legitimate holders, and created risks to the long-term sustainability of the project. Many community members believe intervention is necessary to protect the broader ecosystem.

The Legitimate Participants’ Perspective: Many honest participants joined the Credit Refund program in good faith and complied with the rules. These users reasonably expect fair treatment and a path toward receiving their remaining allocations despite the abuse conducted by others.

Voting Options & Pathways:

The following four options reflect potential pathways developed through discussions with community members and token holders.

Please carefully review each option before casting your vote.

Option A: Unrestricted Claim Release (“Market Discovery” Pathway)

The Mechanism: Lift all temporary claim suspensions and allow the Credit Refund program to continue under its original structure despite the identified abuse and violations of participation limits.

Pros:

1. Immediate liquidity access for all remaining participants.

2. No restructuring or additional delays.

Cons:

1. High risk of continued sell pressure from manipulated allocations.

2. Additional damage to the token economy and market structure.

3. Requires legitimate holders and the broader community to absorb the consequences of the exploit-like activity.

Option B: Contract Cancellation & Supply Burn (“Supply Protection” Pathway)

The Mechanism: Permanently terminate the Credit Refund agreement with Gems Launchpad, permanently disable the remaining claim contracts, and permanently burn 100% of the remaining locked tokens associated with the Credit Refund allocation.

Pros:

1. Permanently removes a significant future supply overhang.

2. Creates a strongly deflationary outcome for the token.

3. Protects long-term token holders and market structure.

Cons:

1. Honest participants who acted in good faith permanently lose access to their remaining allocations.

2. No recovery mechanism for legitimate users.

Option C: 12-Month Lock-Up with Restructured Vesting (“Restructured Growth” Pathway)

This proposal seeks to balance fairness toward legitimate participants while protecting the long-term health of the $RAIN ecosystem.

The Mechanism:

1. Cancellation of Current Unlock Schedule: The current Credit Refund unlock schedule will be permanently canceled.

2. ⁠12-Month Lock-Up (Cliff): All remaining locked allocations will enter a one-year lock-up period effective immediately.

3. 10% Bonus Allocation: Eligible participants will receive an additional allocation equal to 10% of their original Credit Refund amount as compensation for the restructuring and lock-up period.

4. Post-Cliff Settlement Structure: At the conclusion of the one-year cliff, the Foundation may implement: a 12-month linear vesting schedule, or an alternative settlement mechanism denominated in USDT, based on a valuation determined by the Foundation.

5. ⁠Abuser Sanctions: Wallets and participants identified as intentionally bypassing participation limits through multiple accounts or coordinated manipulation may have all remaining allocations revoked.

Option D: Cash Buyout & Burn (“Fixed Buyback Settlement” Pathway)

This pathway is designed to provide immediate settlement to Credit Refund participants while fully removing the remaining Credit Refund token overhang from the market.

The Mechanism: The Rain Foundation will offer to purchase all remaining locked Credit Refund allocations at a fixed price of $0.0031 per token, paid in USDT. This valuation reflects approximately a 10x return relative to the initial pre-sale price. Participants who choose this option will receive immediate USDT settlement in exchange for forfeiting all future claims to the associated $RAIN allocations.

Burn Commitment: The Rain Foundation formally commits to permanently burn 100% of all $RAIN tokens acquired through this buyback process.

The Outcome: Credit Refund participants receive immediate liquidity and a defined settlement structure. The remaining locked supply associated with the Credit Refund program is permanently removed from circulation. Secondary market sell pressure tied to these allocations is eliminated.

Foundation Neutrality & Voting Rules:

Foundation Non-Participation: The Rain Foundation, including all team-controlled wallets and vesting allocations, will not participate in this vote and will not cast votes in any form.

Voting Eligibility: This proposal is open to all independent $RAIN token holders.

Timeline:

Voting Period: This vote will remain active for 24 hours and conclude on May 24, 2026, at 5:00 PM UTC.

Execution: The winning option will be translated into executable DAO actions following the conclusion of the vote.

Technical Notes:

Binding Community Decision: This vote is fully binding. The option that receives the majority support from the Rain community will become the definitive outcome applied to the entire Credit Refund program and all associated participants.

Participants will not be able to individually choose separate pathways after the vote concludes. Regardless of how an individual voted, the final outcome approved by the community will apply universally to all affected allocations and contracts.

Implementation Timeframe: The execution of the selected option may require technical development, smart contract implementation, operational coordination, legal review, and infrastructure planning.

As a result, implementation may take anywhere from several days up to approximately 60 days following the conclusion of the vote, depending on the complexity of the selected pathway and associated technical requirements.