Reddit Discontinues Blockchain-Based Community Points Reward System
Reddit has made the decision to discontinue its blockchain-based rewards system, Community Points, due to scalability challenges and regulatory concerns. The program, launched in 2020, was designed to incentivize user participation in specific subreddits by rewarding them with ERC-20 tokens that could be stored in Reddit’s crypto wallet, the Reddit Vault.
However, the Community Points program faced issues with scalability and high transaction fees on the Ethereum blockchain. As a result, it transitioned to Layer 2 Arbitrum Nova in August 2022. Despite this migration, Reddit has now chosen to discontinue the program entirely.
Reddit stated that discontinuing Community Points will allow them to focus on developing products that provide value to more users. The platform remains committed to innovation and launching new initiatives aligned with the original objectives of the reward system. The service will be completely discontinued on November 8.
Hot Take: Reddit’s Move Away from Blockchain Rewards
Reddit’s decision to discontinue its blockchain-based Community Points reward system reflects the challenges and limitations faced by decentralized platforms. While blockchain technology offers unique benefits such as transparency and immutability, it also presents scalability issues and regulatory complexities.
By shifting their focus away from Community Points, Reddit aims to invest in products that can cater to a larger user base. This move highlights the importance of finding scalable solutions that can accommodate the growing demand for cryptocurrency-based rewards without compromising user experience or burdening users with high fees.
The discontinuation of Community Points does not negate the potential of blockchain technology in revolutionizing online communities. It serves as a reminder that continuous innovation and adaptation are crucial for achieving sustainable and user-friendly decentralized systems.
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