Reddit is discontinuing its blockchain-based “Community Points” rewards program due to scalability challenges, sparking disappointment and token value decline.
Key Takeaways:
- Reddit is ending its blockchain-based “Community Points” rewards program due to scalability challenges.
- The program, which used Ethereum-based ERC-20 tokens, will be retired on November 8, 2023.
- This decision has disappointed the r/CryptoCurrency community and led to a decline in the value of Reddit tokens MOON and BRICK.
- The move highlights the challenges of implementing innovative features in online communities.
In a surprising development, Reddit has announced its decision to retire the groundbreaking “Community Points” rewards program on November 8, 2023. The primary reason cited for this decision is the scalability challenges that the platform has encountered while trying to maintain the program.
“Community Points,” which was launched in May 2020, offered users the ability to earn Ethereum-based ERC-20 tokens known as MOON and BRICK, stored in Reddit’s native crypto wallet service, the “Reddit Vault.” These tokens were awarded to users for their contributions to specific subreddits and communities.
Discontinuing The Program
In an official announcement on October 17, a Reddit team member acknowledged that they recognize “future opportunities” for Community Points.
Reddit will discontinue its blockchain-based Community Points due to scalability and regulatory issues.https://t.co/QGT0tcsmhr
— crypto.news (@itscrypto_news) October 17, 2023
However, the inability to scale the program effectively across the entire platform led to the difficult decision to discontinue the service, including the special membership feature that came with it.
Starting from November 8, Reddit users will no longer see Points in their Reddit Vault, and they will not be able to earn more Points within their respective communities.
This decision has generated disappointment within the r/CryptoCurrency community, with one moderator expressing their discontent regarding the move.
Despite the discontinuation, the value of Reddit tokens, MOON and BRICK, has experienced a significant decline following the announcement.
This has caused frustration and anger among Reddit users and crypto enthusiasts, with some characterizing Reddit’s decision as a betrayal of the community.
A pseudonymous trader, known as Byzantine General, even went so far as to label Reddit’s action as essentially “rugging” their community, emphasizing the widespread negative sentiment.
To Conclude
The discontinuation of Reddit’s “Community Points” program highlights the challenges and complexities associated with implementing blockchain-based features within online communities.
While these initiatives hold promise for rewarding user engagement and creating digital economies, they also face hurdles related to scalability and user adoption.
Reddit’s decision underscores the importance of carefully evaluating the long-term viability and scalability of such innovative features in the ever-evolving landscape of online communities.
