Recently, Reddit made headlines by deciding to put an end to its blockchain-backed rewards initiative, Community Points. As initially reported by TechCrunch, the major barriers to this decision were the complexities of regulations and the hurdles of scalability.
Introduced in 2020, the purpose of the Community Points initiative was to award and motivate user interactions in particular subreddits. These rewards were up for grabs for actions like securing significant upvotes on posts or comments, which fostered a positive community spirit.
However, these points were not mere digital scores. They existed as ERC-20 tokens and were stored in Reddit’s exclusive cryptocurrency storage solution, the Reddit Vault. Holders of Community Points had the flexibility to utilize them in diverse ways, such as exchanging them for unique emojis or badges. Upon redemption, these points were taken out of the system.
Initially, Ethereum’s (ETH) blockchain served as the foundation for the Community Points initiative. Yet, with an eye on trimming down transaction expenses and tackling scalability issues, the switch was made to the Layer 2 Arbitrum Nova in the latter half of the previous year. Despite these efforts, Reddit has opted to cease the initiative.
In an official communication, Reddit clarified, “Shifting our focus from Points will empower us to channel our resources into offerings that resonate with a broader Reddit audience.”
Committed to pioneering and rolling out fresh products that resonate with the goals initially set by the Community Points initiative, Reddit has marked Nov. 8 as the final date for ceasing this service.