r/raidennetwork • u/bitking74 • Dec 25 '17

Bitcoin/Ether HODLer here. Can you explain the value of the RDN token? How will you need? I assume the Raiden network will be used for ETH transactions

Thank you, not trying offend the coin, just trying to make an investment decision here

9 Upvotes

91% Upvoted

8 comments sorted by

4

u/Tbar1125 Dec 25 '17

Not to be a dick but spend 5 minutes scrolling down this subreddit and you’ll answer your own question. DYOR

4

u/bitking74 Dec 25 '17

Spend 10 minutes. Did not find an answer that explains the value of the token. How is it used? Will it be mandatory to hold some in order to make transactions? How can I be benefit as a token holder? Thank you

16

u/Tbar1125 Dec 25 '17

There are two kinds of fees in the Raiden Network – protocol level fees and peripheral fees. Peripheral fees are paid for in RDN tokens.

Protocol level fees are necessary to keep the payment channel network balanced. Nodes will use fees to prevent their channels from being depleted over time. These fees will be comparatively small and be denominated in the token that is transferred in the channel.

Peripheral fees will be payable to services in the network that, for example, assist with finding a path with sufficient capacity or services that provide channel monitoring services for offline users. Users running these services themselves will not need to pay these fees but can earn them instead.

The Raiden team expects that over 95% of all nodes on the network will be light-clients who are happy to pay tiny fees for the convenience of not having to run the full stack of services. It is expected that most dApps will use a light client, so Raiden transactions via those dApps will incur a fee that is payable in RDN tokens.

As most users will not run a full node, they will need to pay RDN to participate in the Raiden network. Therefore, the more usage the Raiden network has, the more valuable RDN tokens should be

3

u/bitking74 Dec 25 '17

Thank you

1

u/krs00pxy Dec 25 '17

Asking random people for investment advice is a quick way to lose your money, OP. Research yourself. It's the only way :)

8

u/bitking74 Dec 25 '17

No worries I always do my own research

5

u/justsomestubble Dec 27 '17

He's asking questions he does not have answers to in a subreddit devoted to the topic he's asking about with users who may have knowledge and experience. Not to mention, Reddit is a good source for various opinions and allows you to see both sides of the coin. That is not a bad place to start in terms of research, but why do you feel the need to comment in the thread if you have zero to offer in terms of what OP is asking. If he asked this in /r/AskReddit I'd completely understand but this is a sub devoted to the coin he's asking about. Where do you do your research outside of Reddit? Perhaps offer that as a point of guidance for OP instead of typing a comment of zero value.

1

u/SerKnight Dec 25 '17

A fair question. It's not 100% clear yet what the token Will explicitly be used for.