Reddit has decided to discontinue its “Community Points” reward tokens. Originally launched three years ago, these tokens aimed to incentivize Reddit users for valuable contributions. As per TechCrunch, Reddit will officially phase out these tokens by November 8.
The Community Points, created as ERC-20 tokens, were initially on the Ethereum network but later transitioned to the Arbitrum Nova scaling network. Users could exchange these tokens for various Reddit benefits, such as badges, emotes, and GIFs.
Recent events saw a significant sell-off of the tokens, resulting in a substantial drop in value. The MOON token, associated with the r/Cryptocurrency subreddit, plummeted by 84% to $0.035. Simultaneously, the BRICK token from r/FortniteBR dipped by 59%, standing at $0.041, as noted by CoinGecko.
But why is Reddit, which had a successful stint with its Collectible Avatar NFTs, choosing to backpedal on this crypto initiative? Tim Rathschmidt, Reddit’s Director of Consumer and Products Communications, cited the high operational resources and the shifting regulatory landscape, particularly in the U.S., as primary reasons. He highlighted that although the Community Points system had staunch supporters, it wasn’t sustainable at scale.
Interestingly, despite winding down the Community Points program, Rathschmidt confirmed that the Collectible Avatars initiative would continue.
Reactions within the Reddit community have been varied. Some users believe that discontinuing the points might lead to a more genuine user experience on subreddits, removing those solely participating for token gains. As one user remarked, the focus might now shift back to quality over quantity, ensuring meaningful interactions.
However, it’s clear that while Reddit might be stepping back from certain crypto initiatives, it’s not entirely leaving the blockchain sphere. The platform’s NFT avatars are here to stay, at least for the foreseeable future.
Source: https://decrypt.co/202014/reddit-killing-crypto-community-points-tokens-holders-dumping-bags
Image: https://unsplash.com/photos/PTiQqAKzbmM
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