Reddit to wind down blockchain-based rewards service ‘Community Points’

Reddit has stated it will soon shutter its long-running, blockchain-based rewards service “Community Points,” mentioning scalability concerns. In an official Oct. 17 announcement in the r/cryptocurrency subreddit, a Reddit staff member stated while the platform saw “some future chances for Community Points, there was no path to scale it broadly throughout the platform.” The Community Points service, including the unique memberships feature, will be unwinded on Nov. 8. “At that point, youll likewise no longer see Points in your Reddit Vault nor make any more Points in your neighborhoods,” the Reddit employee composed. Reddits Community Points will be shuttered on Nov. 8. Source: RedditFirst released in May 2020, the neighborhood points feature rewarded users with points for favorable engagement in particular subreddits and was created to incentivize higher-quality material on the platform.The points were Ethereum-based ERC-20 tokens saved in the platforms in-house crypto wallet service dubbed the “Reddit Vault.” At first introduced on the Ethereum network, the points service later moved to the layer-2 scaling service Arbitrum to facilitate higher scalability. Each subreddit had its own token, with the Moons (MOON) token being the native crypto possession of the r/cryptocurrency board, while Bricks (BRICK) was for the r/FortNiteBR subreddit. Users could spend these points on badges and unique products for their avatars.In response to the initial declaration, the r/cryptocurrency moderator “CryptoMods” explained they had only simply learned of the choice and were “disappointed” by the move.Related: Reddit neighborhood tokens soar on Kraken listing” First and primary your Moons are still yours and are not going to be burned. Transfer performance in the clever contract is not being shut down, and Reddit is removing their control over the contract,” they wrote. The worth of the Reddit tokens MOON and BRICK plunged following the news, and Reddit users and crypto lovers expressed their disappointment and anger at the choice. Pseudonymous trader Byzantine General informed his 163,000 fans on X (Twitter) that Reddit had basically “rugged” their neighborhood, including a screenshot of MOONs cost, which had fallen around 90%. What the fuck, Reddit (yes really the company Reddit) simply rugged their users by “ceasing” their native cryptocurrency.-90% easily. pic.twitter.com/lzuqs1KNsX— Byzantine General (@ByzGeneral) October 17, 2023

“At that point, youll also no longer see Points in your Reddit Vault nor make any more Points in your neighborhoods,” the Reddit team member wrote. The worth of the Reddit tokens MOON and BRICK plunged following the news, and Reddit users and crypto enthusiasts expressed their dissatisfaction and anger at the decision. What the fuck, Reddit (yes actually the company Reddit) just rugged their users by “stopping” their native cryptocurrency.-90% just like that.

” Reddit essentially fucked over every r/cc user in hours. Ive canceled my special membership. Ill never utilize this fucking platform once again. I hope whoever runs this cesspool decays in hell. What a fucking joke,” Reddit user “Bunker Beans” composed in reaction to the original post on r/cryptocurrency. Magazine: Blockchain investigators– Mt. Gox collapse saw birth of Chainalysis

Other Questions People Ask

What led Reddit to wind down its blockchain-based rewards service ‘Community Points’?

Reddit decided to wind down its Community Points service due to scalability concerns. In an official announcement, a Reddit staff member indicated that while there were some future opportunities for the service, there was no feasible path to scale it across the platform effectively. This decision reflects ongoing challenges in integrating blockchain technology within a large-scale social media environment.

When will Reddit officially shut down the Community Points service?

The Community Points service will officially be unwound on November 8. After this date, users will no longer see their Points in the Reddit Vault, nor will they be able to earn additional Points in their respective communities. This timeline has left many users disappointed, as they had invested time and effort into earning these rewards.

What impact did the announcement have on the value of Reddit's tokens like MOON and BRICK?

Following the announcement of the shutdown, the value of Reddit's tokens, including MOON and BRICK, experienced a significant drop, plunging by around 90%. Users and crypto enthusiasts expressed their frustration and anger over the decision, with many feeling that Reddit had betrayed its community. The drastic decline in token value highlights the volatility and risks associated with blockchain-based rewards systems.

How did the Reddit community react to the decision to wind down Community Points?

The reaction from the Reddit community was overwhelmingly negative, with many users expressing disappointment and anger at the decision. Moderators from the r/cryptocurrency subreddit stated they were caught off guard by the announcement and felt let down. Some users even vowed to leave the platform entirely, indicating a deep sense of betrayal regarding their investments in Community Points.

Will users still retain ownership of their tokens after Reddit winds down Community Points?

Yes, users will still retain ownership of their tokens even after Reddit winds down the Community Points service. The moderator "CryptoMods" reassured users that their Moons would not be burned and that transfer functionality within the smart contract would remain operational. This means that while the service is ending, users can still manage their tokens independently.