Reddit to Phase Out Crypto-Powered “Community Points” Reward Tokens
Reddit has announced that it will be discontinuing its crypto-powered “Community Points” reward tokens. These tokens were introduced three years ago as a way to reward users for their high-quality contributions to the platform. However, Reddit plans to fully phase out the tokens by November 8, according to TechCrunch.
Tokens and Prices
Reddit’s Community Points are ERC-20 tokens that were initially minted on the Ethereum network but later moved to the scaling network Arbitrum Nova. Users could redeem these tokens for various perks on Reddit, such as badges, emotes, GIFs, and other features. The two tokens, MOON and BRICK, have seen significant price drops recently. MOON is down 84% today to $0.035, while BRICK has plunged about 59% in the past 24 hours to $0.041.
Reasons for Phasing Out
The decision to phase out Community Points is primarily due to resource requirements that were deemed too high to justify their continuation. Additionally, the regulatory environment surrounding cryptocurrencies may have played a role in this decision. Reddit’s Director of Consumer and Products Communications, Tim Rathschmidt, explained that the product was no longer set up to scale effectively.
Redditors’ Reactions
Redditors have mixed feelings about Reddit’s decision. While some expressed indifference, others applauded the choice. Some users believe that the introduction of Community Points changed the behavior of participants on certain subreddits negatively and hope that their removal will lead to more genuine engagement.
The Future of NFT Avatars
Although Reddit is abandoning some of its blockchain plans, it appears that the NFT avatars minted by users will remain on the blockchain for now. Reddit has not provided further details about the discontinuation of the Community Points program but has confirmed that its “Collectible Avatars initiative” will continue.
Hot Take: Reddit Phases Out Crypto-Powered Community Points
Reddit’s decision to phase out its crypto-powered Community Points reward tokens comes as a surprise to many. The tokens were introduced as a way to incentivize high-quality contributions on the platform, but resource requirements and regulatory uncertainties have led to their discontinuation. While some Redditors are indifferent, others believe that removing these tokens will improve user behavior and foster more meaningful engagement. Despite abandoning certain blockchain plans, Reddit assures users that their NFT avatars will remain on the blockchain. It remains to be seen how this decision will impact the overall Reddit community.
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