Reddit has officially terminated its Community Points program, a blockchain-based rewards system that is no longer in operation. This action was prompted by the growing need for scalability and changes in the regulatory environment.
Tim Rathschmidt, Reddit’s Director of Consumer and Product Communications, has confirmed this. He stated that the scaling requirements, and the changing regulatory environment have made the program progressively unworkable.
Commenced in 2020, Community Points were initially viewed as an innovative method for Redditors to garner value for their constructive participation in specific communities. Moreover, the platform aspires to prioritize alternative initiatives that provide more accessible avenues for expansion.
Rathschmidt has clarified that the decision was not driven by the introduction of the Contributor Program but rather aimed at concentrating on scalable programs that benefit a broader user base.
Reddit’s Evolution: From Community Points to Contributor Rewards
Reddit has already introduced various incentives such as moderator rewards and the Contributor Program, which are more straightforward for users to grasp and embrace.
Once lauded as a pioneering endeavor, Community Points rewarded users with Ethereum tokens for their constructive contributions within designated subreddits. These tokens were stowed away in Reddit’s Vault, a cryptocurrency wallet exclusively accessible by the user.
These points could subsequently be expended on distinct features such as memberships, insignias, and animated emoticons. Once utilized, these points were “eliminated” from circulation.
The point system also functioned as a marker of reputation, exhibited alongside usernames to identify significant contributors within the community.
However, these merits came with challenges related to scalability. In the beginning, the platform used Ethereum for transactions. Although, it quickly became apparent that the high fees and limited bandwidth were inadequate for Reddit’s vast user base.
Reddit Concludes Its Transition to Arbitrum Nova and Introduces the Contributor Program
Consequently, Reddit transitioned to Arbitrum Nova in 2022, a transition that pledged cost-effective transactions while upholding robust security attributes. Notwithstanding, the transition, the program remained a demanding undertaking in terms of scalability.
Hence, Reddit is discontinuing Community Points program, directing its attention toward alternative reward programs, particularly the Contributor Program.
This initiative permits users to transform their Reddit gold and karma into tangible currency. In particular, users who accumulate at least 10 gold within a month have the opportunity to make a monthly withdrawal. On the other hand, individuals with more than 5,000 karma can obtain $1 for each unit of gold.
Reddit’s Overhaul of Reward Systems and Future Plans
Reddit’s determination to phase out Community Points is part of a broader reassessment of its reward schemes. Earlier this year, Reddit also terminated its coin system following widespread user protests against alterations to the platform’s API. This system allowed users to both acquire and bestow Gold and other currencies.
However, it was discontinued after a widespread platform blackout protest that involved over 8,000 subreddits. In the days to come, beta participants in the Community Points program will find their Vaults emptied. They will also stop accumulating new points in their respective communities.
Tim Rathschmidt has pledged to persist in efforts to enhance community governance and facilitate contributions. Meanwhile, subreddit tokens $MOOON and $BRICK have experienced a substantial decline in value following this announcement.
At the time of reporting, $MOON tokens have declined by 87.2%, trading at $0.030, while $BRICK tokens have declined by 45.88% and are trading at $0.055, according to Coinmarketcap.