To the Moon: Reddit’s 155% rise in value has given up control of the Moon
Reddit's Moons token has taken a big step towards full decentralization as administrators plan to relinquish control of its smart contract. This news triggered a 155%+ price increase for the already inflationary community token.
Moons get contributors on the r/cryptocurrency subreddit. Reddit administrators previously announced the sunset of the crypto rewards program, citing regulatory concerns. This caused the price of moonshine to fall by more than 80 percent in October.
Main points
Reddit admins reject moon contract, signaling fully decentralized moons burn in community tank, reducing total supply to 83 million moons, lack of robust coverage and inflation, likely rejection Reddit previously announced sunset Citing the rules of his crypto reward program, the price of Moon rose by 130%+ on news of contract abandonment and reduced supply.
However, Reddit is now relinquishing full control of the Lunar contract at the end of November. Moons become fixed, no new signs can be formed. Exchange details remain intact, allowing for continued trading. Effectively, no entity, including Reddit, controls Moons.
Additionally, all moons held in the community's reserve fund will be burned. This reduces the total supply from 126 million to 83 million. With no more moons, the sign moves from inflation to solid coverage. If tokens are burned in the future, the value may decline.
The r/cryptocurrency mod team says it will work with the community to come up with a plan going forward. This includes determining the distribution of remaining community-owned moons. The mods plan to use the moons to build facilities such as TP bots.
When Reddit first announced it would end its crypto rewards, Moons crashed more than 80 percent. Fully decentralized and the supply reduction news is the opposite, with Moons up as much as 149% in 24 hours. This indicates that investors are more confident in the moon now that the community controls the management.
With reduced supply and no inflation, Moons embark on a new decentralized journey. The market has responded positively to this change in management.
