- Reddit discontinued the Community Points program, citing regulatory issues.
- Moons (MOON), the native token of r/cryptocurrency, reaches an all-time low value.
Reddit is discontinuing its Community Points program, a blockchain-based initiative aimed at rewarding creators and developers, in favour of focusing on more easily scalable rewards programs.
To be precise, Community Points were introduced in May 2020 to incentivize positive engagement in specific subreddits and elevate the quality of content on the platform. These points took the form of Ethereum-based ERC-20 tokens stored in Reddit’s proprietary cryptocurrency wallet service. It is known as the “Reddit Vault.”
According to Tim Rathschmidt, Reddit’s director of consumer and product communications, the resource requirements for Community Points became too high to justify. And that evolving regulatory considerations further complicated the effort. While Reddit appreciated the support of moderators and communities that backed Community Points, the product is no longer suitable for scaling.
Negative Impact
Initially launched on the Ethereum network, the Community Points service later transitioned to the layer-2 scaling solution Arbitrum to enhance scalability. Each subreddit had its unique token, with Moons (MOON) serving as the native cryptocurrency of the r/cryptocurrency subreddit. While Bricks (BRICK) was specific to the r/FortNiteBR community. Users could use these points to obtain badges and exclusive items for their avatars.
In light of this decision, Moons (MOON) has experienced an 87% decline in the past 24 hours. It reached an all-time low. Similarly, Bricks (BRICK) has fallen by 57%, and Donut (DONUT) is down 57%.
In summary, As Reddit discontinues its Community Points program, the platform seeks more scalable reward alternatives amid resource and regulatory hurdles. The decision has cast a shadow over tokens like Moons (MOON), Bricks (BRICK), and Donut (DONUT). It highlights the evolving landscape of cryptocurrency-based initiatives.
