Reddit has announced the closure of its blockchain-powered rewards program, Community Points, effective from November 8. A Reddit representative broke the news on October 17 in the r/CryptoCurrency forum, citing an inability to scale the system as the key reason.
Introduced back in May 2020, the rewards scheme was created to boost high-quality interaction on the Reddit platform. Members earned ERC-20 tokens, underpinned by Ethereum’s blockchain technology and kept in Reddit’s proprietary digital wallet, known as the “Reddit Vault.” Originally operating on the Ethereum network, the program eventually shifted to the Arbitrum layer-2 solution to enhance scale.
Each Reddit community, or subreddit, had its distinct native token. For instance, the r/CryptoCurrency subreddit was associated with Moons (MOON), whereas Bricks (BRICK) was exclusively linked to the r/FortNiteBR community. Users could exchange these digital tokens for specialized badges or unique avatar accessories.
A community moderator, going by the name of “CryptoMods,” lamented the move, assuring users that the tokens they own will remain theirs. “Reddit is relinquishing its regulate over the smart contract, but the transfer functions will stay intact” they stated.
In the wake of the report, the valuation of MOON and BRICK tokens took a sharp nosedive. A crypto trader, Byzantine General, informed his Twitter following of 163,000 that Reddit principally seemed to have let down its core community. highlighting a shocking 90% drop in the price of MOON tokens. Reddit’s decision has been met with disappointment and frustration, leading many to question the platform’s commitment to decentralized systems.
