Ethereum scaling projects is launching a token sale. Subsequently, ICO Raiden Network will seek fund for the development of the payments protocol.
The most highly anticipated Ethereum scaling project is launching a token sale. This October, ICO Raiden Network will seek fund for the development of the payments protocol.
Since, the blockchain consulting firm Brainbot and co-founder Heiko Hees will undertake this process. It is first shown in 2015 that the milestone will be the latest for the project as a way to increase transaction capacity on the world’s second-largest blockchain.
According to the article, finally funds will use to complete the network. Since it enables Ethereum users to send payments back and forth at higher volumes without third party involvement.
But, why would users buy the token?
Raiden Network will probably cost fees due to its design. However, Raiden needs users “watch” their payment channels for a limited period of time to ensure that funds are not stolen.
The “fix” is to outsource the watching of the payment channels to other vendor for a small payment. Raiden team is looking to insert its token- RDN.
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The team says that present plan is to hold a “uniform price Dutch auction”, which means the price tokens would decline in cost over the course of the sale. Probably, this method would generate less hype as sales will have an incentive to buy tokens at cheaper cost.
Significantly, the team mentions that funds will use for other promised projects. Recently, an announced version of the off-chain solution designs for applications includes completion of uRaiden. Since, it is build on top of Ethereum that doesn’t need such complex micropayments. And if enough money left developer will contribute it in other projects.
The spokesperson explained, “This makes it possible to run decentralized applications much faster. Features like this are need if you want a 100 percent fair exchange”.
The team says, the remaining fund will use to fund decentralized applications on the Raiden network.