Reddit is releasing ‘community points’ as a blockchain-based rewards service
Reddit says it will soon shut down its long-running blockchain-based rewards service, “Community Points.”
In an announcement made public in the R/cryptocurrency subreddit on Oct. 17, a Reddit team member said that while the platform “saw some future opportunities for community points, there was no way to scale it widely across the platform.”
The Community Points service, including exclusive membership features, will be affected on November 8. “At that point, you will also not see points in your Reddit Vault or get any more points in your communities,” a Reddit team member wrote.
Community Points, first launched in May 2020, rewards users with positive engagement points for certain subtexts and is designed to encourage high-quality content on the platform.
The points were Ethereum-based ERC-20 tokens stored in the platform's in-house wallet service called Reddit Vault.
Originally launched on the Ethereum network, the Points service later migrated to the layer-2 scaling solution Arbitrum to facilitate greater scalability.
Each subreddit had its own token, the Moon token was the native crypto property of the r/cryptocurrency board, and BRICK was for the r/FortNiteBR subreddit. Users can spend these points on badges and avatar special items.
In response to the original statement, R/cryptocurrency moderator “CryptoMods” explained that they had just learned of the decision and were “disappointed” by the move.
Related: Reddit Community Tokens Added to Kraken List
“First of all, your moons are still yours and will not burn. “The transfer function in the smart contract is not being blocked, and Reddit is removing their control over the contract,” he said.
Following the news, the value of Reddit tokens MOON and BRICK plummeted, and Reddit users and crypto enthusiasts alike expressed their dismay and anger at the decision.
Anonymous trader Byzantine General told his 163,000 followers on X (Twitter) that Reddit had made their community “stressful” and added a screenshot of the moon's price falling by around 90%.
What's more, Reddit (yes, it's a Reddit company) has inconvenienced its users by “breaking” their native encryption.
-90% like that. pic.twitter.com/lzuqs1KNsX
— Byzantine General (@ByzGeneral) October 17, 2023
“Reddit abused every r/CC user within hours. I canceled my exclusive membership. I will never use this forum again. I hope whoever runs this ball pool rots in hell. What a joke,” Reddit user “Bunker Beans” on r/cryptocurrency Wrote a reply to the original post.
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