RAI Finance Community Notice on Warning Designation

(A) Executive Summary

Since its public launch in 2021, RAI Finance has steadily advanced with active governance, product diversification, and ecosystem expansion into Base and other L2 networks. The key strengths include (1) proven achievements in multichain expansion and user adoption, (2) continuous DAO governance operations and transparent token disclosures, and (3) partnerships across both global and Korean ecosystems. These foundations demonstrate RAI Finance’s long-term credibility and growth potential, underscoring the project’s resilience despite recent challenges.

(B) Key Achievements by Year

2021

• Successfully completed the first public token sale (Cobak) within one minute.
• Acquired over 6,000 users through a global public test campaign.
• Launched STS (Social Trading System) product on Ethereum/Polygon mainnets and initiated a bug bounty program with ImmuneFi.
• Announced partnerships with The Graph, Litentry, and others.

2022

• Governance: Contributors have submitted 29 proposals and passed 22, with automated on-chain execution processes.
• Product: Released Substrate code (Polkadot parachain), launched Social Hub, introduced Version 2 with CertiK audit, and released Head & Tail prediction market.
• Partnerships & Listings: Collaborated with QuickSwap/Dragon Syrup (Polygon), secured Coinbase Custody SOFI support, launched BSC bridge, and listed on MEXC.

2023

• Launched Soswap on Base mainnet (during Onchain Summer).
• Expanded to L2s, including aggregated swaps on Taiko testnet.
• Partnered with Coinbase Wallet to release wallet message subscription features.
• Ecosystem Expansion: Participated as an official partner in Coinbase Wallet Quest (one of the first quests on Base).
• Metrics: 35k Base SOFI token holders, Soswap TVL around $2.3M.

2024

• Governance: Expanded governance to the Base network, improving accessibility.
• Metrics on Base: Reported 35k+ holders, $1.5M+ TVL, and $1M+ daily trading volume.
• Released AI Portfolio feature and hosted related events.
• Token Disclosure & Security: Team allocation transferred to DAO, foundation wallet migrated to multisig, disclosed circulating supply (552,743,750 as of Sep 2024), confirmed no distribution of liquidity incentive tokens.

2025

• Circulating Supply Updates: 575,525,000 (Jan 2025) and 584,556,250 SOFI (Feb 2025), with continued monthly disclosures.
• Announced 2025 roadmap focused on AI Agents, ecosystem expansion, and enhanced user accessibility, targeting community-driven growth.
• Performance Summary: Reported 80k token holders and 120k portfolios.
• Maintained regular disclosures and multisig wallet policy.

Summary

RAI Finance has been working to become a financial hub for DeFi users with a focus on:

1. Cross-chain digital asset swaps (Base, Polygon, Ethereum).
2. User-created index token trading (Meme, AI, L2 themes).
3. Social and benchmarking tools for DeFi participants.

With 80,000+ users and consistent contributor-driven execution, RAI Finance has evolved into a functional, autonomous multichain product. This demonstrates the project’s market relevance and persistence.

(C) Improvements and Action Items

Identified Improvements

1. Token price and market capitalization
2. Business development
3. More transparency of project information

Action Items

• Short-term:

1. Consider progressive options on Liquidity Incentive allocation such as token burn.
2. Publish regular market updates and token economy reports to strengthen investor confidence.
3. Listing on global based exchanges and to stabilize the token holder’s trading environment. (The project is in conversation with 2 global exchanges at this moment.)
4. Provide quarterly financial and treasury updates to enhance credibility.

• Mid-term:

1. Expand global/local partnerships and secure new use cases to strengthen business development
2. Launch targeted marketing campaigns in strategic regions to attract new users
3. Collaborate with ecosystem projects (L2s, DeFi, AI) to diversify integration and adoption

• Long-term:

1. Disclose roadmap progress transparently and host community AMAs to reduce information asymmetry
2. Develop sustainable incentive programs (staking, ecosystem rewards) that align long-term token value with community growth

Closing Note

This statement reaffirms that RAI Finance remains a credible, evolving project with active governance, measurable user adoption, and transparent disclosures. Despite the recent designation, the project continues to uphold its commitments and pursue sustainable growth, and therefore should maintain persistence on the exchange.

RAI Finance Foundation Representative