Reddit to Discontinue Blockchain-Based Reward Service Community Points
Social media platform Reddit has announced its decision to shut down its blockchain-based reward service, Community Points. According to a message from Reddit, the regulatory environment and scalability limitations have contributed to this move. While acknowledging the support from moderators and communities, Reddit stated that the product is no longer capable of scaling effectively. The company plans to redirect its resources towards other products that can provide value to a larger number of Redditors. The discontinuation of Community Points is scheduled for November 8, 2022.
Reddit’s Blockchain Ambitions
Community Points was initially launched in 2020 as a way to incentivize users’ positive contributions within specific subreddits. Users could earn ERC-20 tokens called Community Points by receiving upvotes on their comments or posts. These tokens were stored in Reddit Vault, the platform’s crypto wallet. Redditors had the option to spend their Community Points on perks like emojis or badges before the points were burned. In August 2022, Community Points migrated from Ethereum to Layer 2 Arbitrum Nova in order to reduce transaction costs and enhance scalability.
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Hot Take: Reddit’s Pivot Towards New Products
Reddit’s decision to discontinue Community Points reflects its commitment to adapt and invest in products that can better serve its user base. By acknowledging the limitations of scalability and regulatory challenges, Reddit aims to focus on initiatives that provide greater value to Redditors as a whole. This strategic shift allows the company to explore new opportunities for user engagement and community building beyond the blockchain-based reward system. While Community Points may be coming to an end, it paves the way for innovative developments within the Reddit ecosystem.
