Community Points, Reddit’s popular blockchain-based rewards initiative, is coming to an end. Tim Rathschmidt, the project’s consumer and product communications director, highlighted the program’s challenges. Following this news, the prices of Reddit-based altcoin projects dropped sharply.
Reddit is removing community scores
Community Points launched in 2020 and rewards proactive participation on selected subreddits. These points, which were essentially Ethereum tokens, were sitting in Reddit’s Vault. Additionally, it served as a crypto wallet. Once allocated, they could not be returned as neither Reddit nor its moderators could take them back. Users could spend these tokens for special features, such as memberships that granted animated emojis and distinctive badges. Once spent, tokens were irreversibly “burned.”
Serving as a “reputation” emblem, Community Points appeared next to usernames in active subreddits, celebrating top contributors to the platform. Their presence on the blockchain meant Redditors could showcase their “reputation” universally online. However, scale presented significant obstacles. High transaction fees and limited bandwidth initially tied to Ethereum limited the growth of Community Points. Reddit’s solution, which migrated to Arbitrum Nova in 2022, aimed to leverage Ethereum’s scaling capabilities while maintaining its core benefits. However, this also turned out to be ineffective for the social platform. Tim Rathschmidt made the following statement regarding the issue:
Although we saw some future opportunities for Community Points, the resource required was unfortunately too high to justify. The regulatory environment has since contributed to this effort. While the moderators and communities that support Community Points are incredible partners, they are no longer amenable to scale as the product evolves.
This is not the first award program that the project has ended!
Reddit has tried numerous incentives during its tenure. Among these, the Contributor Program, a system that converts Reddit gold and karma into real currency, stands out. This program allows users who earn 10 gold coins in a month or users with more than 5,000 karma to initiate monthly withdrawals. Interestingly, this isn’t the only rewards program Reddit is discontinuing this year. The previous system, which allowed users to purchase gold to honor others, was discontinued following significant backlash from the community. Then came the Contributor Program.
Rathschmidt also clarified that the goal is not to supplement Community Points with the Contributor Program. The focus is on scaled, useful programs. “Many of the benefits of Community Points are integrated into the platform,” Rathschmidt concluded.
The prices of 3 Reddit-based altcoins crashed with the news!
Following the news, Reddit’s tokens MOON and BRICK experienced a sharp decline in price. MOON, which is associated with r/Cryptocurrency, is down 84% today to $0.035. Meanwhile, r/FortniteBR’s BRICK has dropped 59% in the last day. Thus, the altcoin fell to $ 0.041.
In addition, the price of DONUT, another Reddit based token, also dropped sharply. The token witnessed a drop of more than 65% during the day.
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