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Rainbow Links 20% Equity and Real-Time Buybacks to RNBW Token

By

Shweta Chakrawarty

Shweta Chakrawarty

Rainbow revealed its RNBW tokenomics: the Foundation will hold 20% of company equity for the benefit of token holders.

Rainbow Links 20% Equity and Real-Time Buybacks to RNBW Token

Quick Take

Summary is AI generated, newsroom reviewed.

  • The Rainbow Foundation will hold 20% of company equity at TGE, making RNBW token holders indirect owners of the business.

  • If Rainbow is acquired, the foundation will distribute the liquidation proceeds from its 20% stake to RNBW holders.

  • Real-time token buybacks funded by platform fees (swaps, perpetuals) will replace inflation, tying rewards to actual product usage.

  • The TGE is scheduled for early next week after the final legal paperwork granting the Class F equity shares to the foundation is completed.

Rainbow just made a bold move that blends crypto tokens with real company ownership. The Rainbow Foundation will hold 20% of Rainbow’s total equity at the time of the token generation event (TGE). That stake will make the foundation the single largest shareholder in the company. More importantly, that equity will not belong to insiders. The foundation will hold it on behalf of all RNBW token holders. This means RNBW holders gain indirect ownership exposure to Rainbow’s business from day one.

If Rainbow is ever acquired, the structure becomes even more direct. The foundation will liquidate its 20% equity stake and distribute the proceeds to RNBW holders. This setup links real-world company value to on-chain ownership in a rare way. The team confirmed it created a new class of shares called “Class F” specifically for this foundation structure. The final paperwork is now the last step before the TGE date goes public.

Real-Time Token Buybacks Replace Emissions

RNBW will not rely on inflation-based rewards. Instead, Rainbow plans to use real platform revenue to buy back tokens in real time. Here is how it works. When users perform revenue-generating actions like swaps, perpetual trading, or prediction markets, Rainbow collects fees. A portion of those fees goes directly into buying RNBW from the open market. Those purchased tokens then flow back to users as rewards.

This means rewards come from real usage, not token printing. That design keeps supply pressure lower and ties upside to actual activity. In simple terms, users earn by using the product, not by waiting for emissions. Rainbow also framed RNBW as the backbone of its rewards and ownership system. The token will sit at the center of long-term incentives as Rainbow grows beyond a wallet into a full Web3 finance hub.

TGE Timing and Safety Warnings for Users

The Rainbow Foundation confirmed it will announce the official TGE timing early next week. The delay is procedural, not market-driven. The team wants to finalize the legal transaction that grants the foundation the Class F equity shares before launch. Rainbow also issued strong safety reminders.

  • $RNBW is not live yet.
  • Any token claiming to be RNBW right now is fake.
  • Rainbow will never ask for seed phrases.
  • Only two official accounts exist for updates.

This warning comes as early interest grows fast across crypto social media. Impersonators often strike before high-profile token launches.

Why This Structure Changes the Token Playbook

Most crypto tokens promise alignment. Few actually deliver legal equity exposure. Rainbow’s setup creates a real bridge between traditional ownership and on-chain participation. Consequently, token holders now share upside in three ways.:

  • Product usage rewards from real fees.
  • Equity-backed value through the foundation.
  • Potential acquisition payouts through the 20% stake.

This approach also shifts incentives for the core team. If Rainbow grows, both shareholders and the community win together. That shared upside removes the usual tension between “users vs. equity holders.” As the TGE details approach, the market will closely watch how this hybrid ownership model performs in real conditions. If it works, it may set a new standard for how Web3 projects tie tokens to real business value.

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