Reddit Ends Community Points: What Went Wrong?
Reddit, one of the most widely used social media platforms, is on the verge of shutting down its Community Points by November 8, 2023. This decision stems from scalability concerns and increasing regulatory pressures. For cryptocurrency enthusiasts, the disappointment is palpable as Tim Rathschmidt, Reddit's Director of Customer and Product Communications, made it super-clear that the resources required to sustain this three-year-old blockchain-based rewards service are “unfortunately too high to justify”.
What are Reddit's Community Points and why did Reddit end them?
Reddit’s inception of Community Points aimed to revolutionize community governance and empower contributors and communities in innovative ways.
Launched in May 2020, the Community Points program incentivized high-quality content creation by rewarding users with points for positive engagement in certain subreddits. These points were ERC-20 tokens operating on the Ethereum blockchain and were securely stored in Reddit's in-house cryptocurrency wallet service, aptly named the "Reddit Vault."
Initially, these tokens were built on the Ethereum blockchain. However, in August 2022, they transitioned to a layer-2 scaling solution called Arbitrum Nova, aiming to enhance scalability and reduce transaction fees.
In an official announcement on October 17, it was made explicit that Community Points would cease to exist in the Reddit Vault, leaving users without any further Points to be earned or used, as confirmed by a member of Reddit's team.
Reddit's decision to retire this system signifies a strategic shift, allowing them to channel resources into other products that serve similar purposes but are easier to grasp and integrate. One such initiative is the rollout of the New Contributor Program, where users can earn real money based on the Karma and Gold they've accrued through their valuable contributions. Other examples include Subreddit Karma and GIFs.
So, what lies ahead for Community Points?
“First and foremost your Moons are still yours and are not going to be burned. Transfer functionality in the smart contract is not being shut off, and Reddit is removing their control over the contract,” the reddit team clearly stated.
While the discontinuation of Community Points is undoubtedly a setback for Reddit, upon a comprehensive evaluation of the situation, it appears highly likely that the value of Moons will continue to decline as a consequence of this shutdown.
This decision is certainly a significant pivot for Reddit, and it raises questions about the future of blockchain-based rewards in the social media space. While the decision to retire Community Points may disappoint some, it underscores the challenges and complexities associated with integrating cryptocurrencies into mainstream platforms.
In conclusion, Reddit's decision to discontinue its Community Points system reflects the complex and evolving landscape of cryptocurrency integration into mainstream platforms. While it may disappoint some users and enthusiasts, it serves as a reminder that the scalability and regulatory challenges associated with blockchain-based rewards are not easily overcome. Nevertheless, the future of blockchain and cryptocurrency in social media remains an intriguing and ever-evolving topic, and it will be fascinating to see how platforms like Reddit continue to adapt and innovate in this space.
Also Read: Baidu Launches Ernie 4.0 Enhanced AI Chatbot for Challenging ChatGPT
from Coin Gabbar News https://ift.tt/4hH8XfI
via IFTTT
