Reddit to Phase Out Blockchain-Based Community Points
Reddit, the popular social media platform, has announced its decision to phase out and discontinue blockchain-based community point reward tokens (MOON and BRICK) by November. The announcement was made by a Reddit team member in the r/CryptoCurrency subreddit, citing resource constraints and regulatory risks as the reasons behind this move.
The Role of Community Points on Reddit
Community Points have been an integral part of the Reddit ecosystem, serving as incentives to reward users for their contributions. These points have contributed to the growth of the platform and have driven user engagement. However, Reddit plans to fade off the reward program by November 8, and users will no longer earn points in their Reddit vault.
Overview of Reddit’s Community Points
Reddit’s Community Points are ERC-20 tokens that were launched in 2020. They rewarded users for positive engagement in specific subreddits and could be exchanged for special features or converted to Ethereum tokens stored in Reddit’s Vault.
Challenges Faced by Reddit and Backlash from the Community
In 2022, Reddit faced challenges in scaling Community Points due to high transaction fees on the Ethereum network. This led them to adopt the layer-2 scaling solution Arbitrum. Earlier this year, Reddit discontinued its coin system following protests against API changes. The recent developments have had a significant impact on the utility and value of MOON and BRICK tokens.
The Fate of MOON and BRICK Tokens
The value of MOON and BRICK tokens has plummeted as token holders sell them off due to their close ties to the Community Points system. MOON has experienced an 84% drop today with a current price of $0.035, while BRICK has declined by about 59% over the past 24 hours, now priced at $0.041.
Hot Take: Reddit’s Decision to Phase Out Community Points
Reddit’s decision to phase out blockchain-based community points reflects the challenges they faced in scaling this reward system. While the points played a significant role in incentivizing user engagement and rewarding high-quality contributions, resource constraints and regulatory risks became obstacles to their scalability. This move has led to a backlash from the community and a decline in the value of MOON and BRICK tokens. It remains to be seen how Reddit will address these challenges and find alternative solutions to reward its users.
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