Reddit’s r/cryptocurrency community is celebrating the decentralization of its native token, Moons, which has surged in price after an update by the moderators.
Reddit Moons, the crypto token of the r/cryptocurrency subreddit, have spiked by over 130% following an announcement that Reddit admins will renounce the Moons contract, making the token fully decentralized and capping its supply.
The price of MOON currently stands at just under $0.13, up 133% on the day, according to CoinGecko.
Reddit Moons: A Reward for Quality Content
Reddit Moons are part of Reddit’s Community Points program, launched in 2020 as an experiment to reward users for creating and engaging with quality content on the platform.
Users can earn Moons by posting, commenting, and voting on the r/cryptocurrency subreddit and use them to tip, buy, or sell digital goods and services.
Reddit Moons are ERC-20 tokens initially minted on the Ethereum network but later moved to the scaling network Arbitrum Nova to reduce gas fees and improve user experience.
Reddit Admins to Renounce Moons’ Contract
In an update posted on November 12, 2023, the r/cryptocurrency mod team reported that “The Reddit admins will be renouncing the Moons contract,” a process expected to be completed by the end of the month.
The process will mean that no new Moons can be created and that exchange listings should remain intact, with Moons becoming “completely decentralized” after the contract is sent to a burn address.
“Effectively, no one will have control of the contract,” the moderators clarified. “Not Reddit, not the mod team.”
The moderators further explained that all Moons held in the Community Tank, which is a pool of tokens reserved for future distribution, will be burned, reducing the total supply of Moons to just over 83 million.
As a result, the token will no longer be inflationary—and should any MOON be burned in future, it will become deflationary.
Reddit Moons Rally on Decentralization News
The news of the decentralization and supply cap of Reddit Moons was met with enthusiasm and excitement by the r/cryptocurrency community, which saw the token’s price soar by over 130% in a day.
Many users expressed their gratitude and appreciation to the Reddit admins and the mod team for their support and dedication to the project and praised the decision to make Moons fully decentralized and community-driven.
Some users also speculated that the news could attract more attention and adoption to Reddit Moons, as well as increase their value and utility in the crypto space.
Reddit’s Community Points Program to End Soon
The update on Reddit Moons comes as Reddit prepares to end its Community Points program, which also includes BRICK, the token of the r/FortniteBR subreddit.
In October, Reddit announced that it would be sunsetting its crypto-based rewards program, citing the resourcing needed to support the program, as well as the “regulatory environment.”
Reddit said it would stop distributing Community Points after November 8, 2023, and that users would have until December 8, 2023, to claim their tokens and transfer them to their wallets.
The news caused prices of MOON and BRICK to nosedive, with MOON plunging over 80% in a day.
However, Reddit also assured users that it would not interfere with the existing tokens and would continue exploring new ways to empower its communities.
