Raiden, the highly anticipated Ethereum scaling project, will hold its ICO in October.
The Raiden Network is designed to be an infrastructure layer that sits on top of the Ethereum blockchain to allow for near-instant, low-fee and scalable token transfers to be made on the network.
The launch of a publicly traded token, called RDN, will allow the payment protocol to be further funded and developed.
The project was first unveiled in 2015 as a way to increase the transaction capacity of the Ethereum blockchain. The funds generated by the ICO will allow developers to complete the network, enabling Ethereum users to send much higher volumes of payments to one another.
The tokens are a way of allowing the Raiden team to fix a ‘hole’ in the system caused by its design. Use of the network will likely cost fees. An example of this is that there is a requirement that users ‘watch’ payment channels for a set period of time to make sure the transaction happens correctly.
Since users will probably not want to do this ‘watching’ themselves, it will be outsourced to vendors. The tokens will pay for this outsourcing.
Trying to create less hype
The Raiden team are hoping that to avoid the intense speculation that has engulfed other ICOs in recent months, and are aiming for a “boring” sale with little marketing.
The sale will be a ‘uniform price Dutch auction’ where the price of tokens will decrease over the course of the sale. This is a means of trying to dampening the hype around the sale, as the less people that know about the sale, the better the chance of being able to get more tokens at a lower price.
This method was attempted by Gnosis in the spring. It did not work out quite as expected, with $12.5 million tokens bought in around 15 minutes.