Rainbow, the popular Ethereum wallet company, has announced a groundbreaking tokenomics model for its upcoming RNBW token. The Rainbow Foundation will become the single largest shareholder in the company at the token generation event (TGE), holding 20% of Rainbow's total equity on behalf of all RNBW token holders.
This structure creates a direct link between on-chain token ownership and real-world company equity. If Rainbow is ever acquired, the foundation will liquidate its 20% stake and distribute the proceeds to RNBW holders. To facilitate this, the company has created a new class of shares called "Class F" specifically for the foundation, with the final legal paperwork being the last step before announcing the official TGE date, expected early next week.
In a significant departure from traditional token models, RNBW will not rely on inflationary emissions for rewards. Instead, Rainbow plans to implement a real-time buyback system funded by platform revenue. When users perform revenue-generating actions like swaps, perpetual trading, or prediction markets, a portion of the collected fees will be used to buy RNBW tokens from the open market. These purchased tokens will then be distributed as rewards to users, creating a direct incentive loop tied to actual product usage.
The company has issued strong safety warnings as interest grows, stating that $RNBW is not yet live, any current token claiming to be RNBW is fake, and Rainbow will never ask for seed phrases. The team emphasizes that this hybrid model aligns incentives by allowing token holders to share upside through three channels: product usage rewards from real fees, equity-backed value through the foundation, and potential acquisition payouts.
Analysts suggest this move could set a precedent for future token offerings, potentially attracting regulatory scrutiny while offering a new model for equity and governance participation in crypto projects. The market is watching closely to see how this innovative approach performs, as it represents a rare bridge between traditional company ownership and on-chain token economics.