Reddit’s Blockchain Based Community Points are Going Away, Related Token Value Plummets
According to a statement by Reddit’s community team, the Community Points program, a blockchain effort created to reward creators and developers, will be stopped on November 8.
The change prompted the value of tokens related to the software to tumble, with Moons (MOON) falling 85%, Bricks (BRICK) falling nearly 70%, and Donuts (DONUT) falling 60% on the announcement.
Community Points, launched in 2020, allowed subreddit moderators to award contributors with cryptocurrency tokens such as DONUT in r/ethtrader, BRICK in r/Fortnite, and MOON in r/CryptoCurrency. However, Reddit has had difficulty expanding the program’s reach.
The community team at Reddit noted in the post, “Though we saw some future opportunities for Community Points, there was no path to scale it broadly across the platform.”
Community Points were initially built on top of Ethereum before migrating to the Arbitrum Nova layer-two solution last year to improve efficiency and lower expenses. Regulatory constraints, on the other hand, made scaling Community Points much more challenging.
Despite the change, the problem persisted when introducing Community Points across the entire network. According to Tim Rathschmidt, Reddit’s director of consumer and product communications, the firm prioritizes reward systems like the Contributor Program that are easier to expand.
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