RAILGUN

RAILGUN is onchain zero-knowledge privacy tooling for EVM-compatible networks. The protocol is deployed on Ethereum, Arbitrum One, Polygon, and BNB Chain, enabling private transactions within the security and liquidity of those networks.

RAILGUN allows users to move assets from public ERC-20 token balances into a shared private pool (shielding), then transact from within that private state without publicly revealing wallet identity, balances, or transaction intent. Assets inside the pool are represented as private balances rather than account-based balances, allowing users to prove ownership and validity without revealing which assets they control.

RAILGUN generates protocol revenue through a 0.25% fee applied to both shielding and unshielding transactions. These fees are collected directly by the protocol’s smart contracts and accrue to the DAO-controlled treasury.

The protocol distributes 2% of treasury tokens to RAIL stakers every two weeks, creating a direct and observable link between protocol usage, treasury growth, and cash flows.

Revenue capture rate measures protocol revenue relative to the value held in RAILGUN's private pool. Because RAILGUN monetizes the movement of assets rather than their passive storage, the metric reflects how frequently capital enters and exits the privacy system.

Higher revenue capture indicates greater turnover within the privacy pool, while lower revenue capture suggests assets remain shielded for longer periods, generating less revenue relative to the pool's value.

RAILGUN’s revenue multiple compares RAIL’s average market cap to annualized protocol revenue. It measures how the market values the protocol relative to the revenue generated by shielding and unshielding activity.

Higher multiples indicate the market is assigning a higher valuation relative to current fee generation, while lower multiples indicate the opposite. The metric is influenced by both changes in RAIL’s market cap and changes in revenue generation driven by turnover within the privacy pool.

In July 2021, the RAIL token launched on Uniswap and governance contracts were deployed, establishing the RAILGUN DAO. The DAO’s first governance action authorized deployment of the RAILGUN smart contract on Ethereum mainnet, marking the protocol’s initial production launch. Since its inception, RAILGUN has remained governed through the DAO, with no centralized entity controlling protocol operations, user funds, or revenue.

RAIL is the governance token of the RAILGUN DAO, granting RAIL stakers governance rights over protocol parameters and the DAO treasury. The initial RAIL supply of 50 million was distributed through a broad airdrop to Ethereum addresses with prior histories of donating to privacy-focused projects and charities. In January 2022, the DAO approved the minting and allocation of 7.5 million RAIL to strategic partners Digital Currency Group and LD Capital, based on approximately $10 million in treasury contributions and commitments to participate in governance.

RAILGUN staking includes a mandatory 30-day unlock period for staked RAIL. During this period, unstaking tokens lose voting rights, are no longer eligible for governance allocations, and cannot yet be withdrawn.

This mechanism creates a proof-of-commitment dynamic for RAIL stakers, while staking inflows and outflows reflect changes in the amount of RAIL actively participating in governance and rewards eligibility.

The protocol distributes 2% of treasury balances to RAIL stakers every two weeks, equivalent to approximately 52% on an annualized basis, paid in WETH, DAI, and RAIL and allocated pro rata based on each staker’s share of staked RAIL.

The remaining 48% of protocol revenue is retained under DAO control, providing flexibility to fund operations, incentives, and long-term ecosystem development.