Reddit Moons Token Becomes Completely Decentralized
By the end of this month, Reddit admins are relinquishing control over the moons contract and burning over 30% of its total supply, making the r/CryptoCurrency community token completely decentralized.
The renouncement was confirmed by community moderators in an update late yesterday, rendering the contract immutable and preventing the creation of new moons tokens. The Reddit admins will send the contract to a burn address so that no one has control over it.
About 34% of tokens held in the “Community Tank” under their control will also be burned, reducing the total supply from around 126 million to 83 million. All exchange listings for moons will remain intact and the token will continue to be traded by exchanges and wallets, according to the post.
The moderator team plans to work with the community to develop a plan for distributing the remaining moons in the community wallet, potentially based on community contributions, tipping, and contest participation. They are also working on technological enhancements to improve user experience and utility.
Moons Token Surges 240%
Following the update, the price of moons tokens surged 240% from $0.05 to $0.17 before consolidating at $0.14, according to CoinGecko data. Reddit’s r/FortNiteBR bricks token, another community reward token, gained around 85% during the same period and currently trades at $0.06.
Reddit Sunsets Community Points
Last month, Reddit announced it was discontinuing its blockchain-based reward service Community Points three years after its rollout due to regulatory issues and scaling challenges.
Two days later, on-chain data indicated that at least two moderators linked to Reddit’s cryptocurrency subreddit liquidated large amounts of moons tokens before Reddit publicly announced the end of its Community Points program.
A spokesperson for Reddit emphasized that points were never intended to have any monetary value, and buying, selling, and trading points has always been a violation of their terms for the product.
Hot Take: Moons Token Embraces Full Decentralization
The move towards full decentralization is a significant step for Reddit’s moons token as it aims to empower its community by eliminating centralized control. The surge in token price following this announcement reflects positive sentiment surrounding this development. As other platforms face similar regulatory challenges with crypto rewards programs, how Reddit navigates these issues can set a precedent for other social media companies moving forward.
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