Reddit has announced its plan to close down its long-standing blockchain-based rewards service called “Community Points.” This decision is mainly driven by scalability concerns, as mentioned in an official statement made by a Reddit team member on October 17. Despite recognizing potential opportunities for the service, Reddit acknowledges that it is not feasible to scale it broadly across the platform.
The Community Points service and its special membership feature will be terminated on November 8, according to the Reddit team member. After this date, users’ Reddit Vaults will no longer show Points, and earning Points within communities will no longer be possible.
Originally launched in May 2020, Community Points aimed to reward users for positively engaging in specific subreddits, with the goal of incentivizing higher-quality content on the platform. The points were ERC-20 tokens based on the Ethereum blockchain and stored in Reddit’s in-house crypto wallet service known as the “Reddit Vault.” Initially deployed on the Ethereum network, the points service later migrated to Arbitrum, a layer-2 scaling solution, to enhance scalability. Each subreddit had its unique token, such as Moons (MOON) for the r/CryptoCurrency board and Bricks (BRICK) for the r/FortNiteBR subreddit. Users could use these points to purchase badges and exclusive items for their avatars.
Reaction and Response
In response to the announcement, the r/CryptoCurrency moderator, known as “CryptoMods,” expressed disappointment with the decision. They clarified that users’ Moons tokens would not be burned and Reddit was relinquishing control over the contract, emphasizing that the tokens still belonged to the users. However, despite this assurance, the value of Reddit tokens MOON and BRICK experienced a significant drop following the news. Many Reddit users and crypto enthusiasts voiced their dissatisfaction and anger towards the decision. A well-known trader, Byzantine General, vented his frustration on Twitter, highlighting Reddit’s actions as a betrayal to their community. The price of MOON had plummeted by approximately 90% at that time, exacerbating the sense of discontent among users.
Reddit’s decision to shut down its blockchain-based rewards service, Community Points, comes as a response to concerns regarding scalability. While the service initially aimed to encourage high-quality content and user engagement, Reddit has recognized the limitations in scaling it across the entire platform. Despite disappointment and frustration expressed by some users, Reddit has ensured that the tokens users have earned will remain in their possession. The closure of Community Points marks the end of an experimental venture for Reddit in incentivizing user participation through blockchain technology.
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