Reddit to Discontinue Blockchain-Based Community Points Program
Reddit has announced that it will be discontinuing its blockchain-based Community Points beta program, including the Special Memberships feature. The decision was made due to scalability issues and regulatory challenges. While the program received support from moderators and community members, it was not sustainable for the entire platform. Reddit is now introducing a new Contributor Program that allows eligible users to earn cash based on their karma and gold earned from qualifying contributions.
Impact of Regulatory Environment and Timing
The regulatory environment further complicated the scalability issues faced by Reddit’s Community Points program. The company is currently rolling out an improved user interface and incorporating the program into this framework would require excessive resources. As a result, Reddit will focus on more scalable and resource-efficient programs like the Contributor Program. All existing points in community tanks will be nullified by the end of the year.
Criticism and Suspicion in the Crypto Community
The announcement led to criticism and suspicion within the cryptocurrency community as subreddit-specific tokens’ value plummeted. Some moderators were suspected of selling large quantities of tokens just before the announcement. On-chain data analysis suggests that there may have been insider trading by certain moderators.
Moderators’ Response and Future Plans
Moderators of the CryptoCurrency subreddit were informed about the decision only an hour before the public announcement. They reassured the community that their Moons tokens are secure and will not be destroyed. The moderators are considering options to sustain Moons tokens independently, either by taking over ownership of the smart contract or introducing a new token. They emphasized that most features related to Moons do not require moderator intervention.
Hot Take: Reddit’s Decision Sparks Controversy in Crypto Community
Reddit’s decision to discontinue its blockchain-based Community Points program has sparked controversy and suspicion within the crypto community. The announcement, citing scalability issues and regulatory challenges, led to a drop in the value of subreddit-specific tokens. On-chain data analysis suggests that some moderators may have engaged in insider trading by selling large quantities of tokens just before the announcement. While moderators reassure the community that their tokens are secure, they are exploring options to sustain Moons tokens independently. The future course of action is contingent on Reddit’s internal decisions and community discussions.
By
By
By
By
By