The sudden announcement by Raiden that they were to ICO has been met with criticisms by ethereans, some of whom publicly called it a “cash grab.”
The strong language by the somewhat pseudo-anonymous ethereum users seems to have been spurred mainly because the Raiden Network is apparently planning to require the use of their specific token for certain services. In reply to whether there will be a token, Raiden says on its website:
“Yes, peripheral services will be paid for in RDN tokens, a virtual currency dedicated to pay for services within the Raiden Network. Note that this token is not at the core of the protocol and only used by participants who opt to pay for the convenience of not having to run a full node.”
This specific requirement has been criticized by some as adding, what they say is unnecessary, complexity to the network as users will then need both eth and RDN, rather than just eth.
The developers have not yet publicly responded to these criticisms. When we tried to reach them yesterday we received no response by the co-founder, but were told by one of the developers that an announcement with all the relevant details should be expected soon.
The Raiden Network is a second layer protocol, much like the Lightning Network, which aims to increase capacity by bundling many transactions into just one blockchain transaction.
It is complementary to on-chain scaling, but some ethereans see it as somewhat part of the ethereum network, with some wondering why the Ethereum Foundation is not funding Raiden.
Vitalik Buterin, Ethereum’s inventor, responded to some comments, but only to say that Raiden was not part of the Ethereum Foundation. Not elaborating further on why.
He did however tweet out to say that he is giving out 100% of his OmiseGo and KyberNetwork “advisor shares” either to a charity or they will be “used to privately fund Ethereum second-layer infrastructure (state channels, multisig wallets etc), or some combination of the two.”
With the funding being conditional on no ICO which some are seeing as a potential offer for Raiden. A potential offer which currently we do not quite know whether it would be accepted.
The Raiden Network has been in development for two years with the project further hoping to extend its second layer to smart contracts themselves, thus considerably increasing capacity.
If they ICO it would probably be one of the most anticipated in the entire space. But it’s unclear at this point whether the project will take on board the specific criticisms regarding the use of tokens for Raiden services.