Reddit Launches Community Points As Tokens On The Ethereum Blockchain
The popular social media platform, Reddit, is launching Community Points as tokens built on the Ethereum blockchain. Users can earn them every month by commenting or posting new threats. They will be able to spend the Points on various services, such as purchasing memberships and voting on weighted polls.
Reddit Tokens On Ethereum Network
According to a recent blog post, Reddit is introducing a new feature – Community Points. They are built and stored as standard ERC-20 tokens on the Ethereum blockchain, making them interoperable with existing blockchain tools.
The Points will be a measure of reputation and contribution within the community. They will be displayed next to each username on posts and comments in the subreddit.
The distribution will occur monthly based on the contributions each user has made within the past four weeks. Reddit will publish a list of Points earned once per month. The community will have a week to review it and propose any alternatives.
Upon clarifying all changes, Reddit will announce the final version. Users will have six months to claim their Points from the time the final list is generated; otherwise, they will expire.
Users also need to establish wallets on the Ethereum blockchain. Thus, they will receive a public address and a private key required to access and manage the Points on the wallet.
According to some community members, the new ERC-20 tokens will be DeFi-compatible. This could boost the DeFi adoption significantly as Reddit has over 300m monthly active users.
Maximum Cap And Usage
The post also indicated that the number of Points allocated amongst users will decrease over time, converging towards a maximum cap. The initial distribution will consist of 50 million Points, based on earnings in the subreddit to date. Over the first year, another 50 million will be distributed.
In time, however, the total amount in every cycle will keep decreasing when the number of Points approaches 250 million.
Interestingly, users can purchase Special Memberships with the Point. When that happens, though, those Points will be burned (destroyed), making the other shares of tokens go up. “This ensures that buying membership rewards the community as a whole,” the blog explained.
Reddit will also burn some of its own Points when people are buying memberships with dollars.
Those who have Community Points will also get another view of poll results.
“In addition to the normal headcount view (1 vote per person), there is also a weighted view by Points (~one per Point). This allows the community to see how its core contributors feel.”
Aside from regular users receiving Points, some will be distributed amongst other contributors. Moderators will get 10% for their administrative duties, Reddit will receive 20%, and another 20% “will be reserved for the broader community.”
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