Reddit has ended the blockchain-based Community Points reward program, citing regulatory and scalability issues.
Reddit recently decided to stop using Community Points, their blockchain-based rewards program. Reddit mentioned the difficult regulatory environment and scalability problems as the main causes of the change in an official statement first published on TechCrunch.
The Community Points scheme, which went live in 2020, was created to reward and encourage user activity in particular subreddits. Users might obtain these benefits by engaging in actions like receiving many likes or comments on posts and encouraging active community participation.
These acquired points weren’t merely virtual totals; they were stored in Reddit’s exclusive cryptocurrency wallet, the Reddit Vault, as ERC-20 tokens. Community Points could be used in a variety of ways by their recipients.
This included exchanging them for unique badges or emojis. These points would be “burned,” or taken out of circulation after being redeemed. The Community Points program was initially created on the Ethereum (ETH) network.
However, it switched to Layer 2 Arbitrum Nova in August of last year to lower transaction costs and address scalability issues. The business has chosen to end the initiative. Reddit affirmed in a statement”:
“Moving away from Points allows us to invest in products that provide value to more Redditors”
The social media platform underscored its dedication to developing and introducing new goods that align with the goals that the Community Points system was designed to pursue. The service will end completely on November 8, according to the sunset date established by the platform.
