In a recent announcement, Reddit has chosen to halt its blockchain-based reward system, Community Points, citing challenges in scalability and concerns over regulatory compliance. The decision, revealed in an official statement and initially reported by TechCrunch, marks the end of a venture launched in 2020 to incentivize and acknowledge user engagement within specific subreddits.
Community Points, introduced as a mechanism to reward user participation, allowed Reddit users to earn points for various activities, including receiving substantial upvotes on posts or comments. These points were not mere virtual tallies; they were actualized as ERC-20 tokens and stored in Reddit’s proprietary cryptocurrency wallet, the Reddit Vault.
Recipients of Community Points enjoyed flexibility in using them, whether for redeeming distinctive emojis or badges. Upon redemption, these points were “burned,” effectively removing them from circulation and creating a sense of scarcity and exclusivity.
Initially built on the Ethereum (ETH) blockchain, the Community Points program transitioned to Layer 2 Arbitrum Nova in August of the preceding year. This move aimed to mitigate transaction fees and address scalability issues. However, despite these efforts, Reddit has chosen to discontinue the program.
Reddit’s official statement emphasized that moving away from Community Points would enable the platform to invest in products that offer value to a broader audience of Redditors. The company expressed its unwavering commitment to innovation and the launch of new products aligned with the initial goals of the Community Points system.
The discontinuation of the Community Points service is set for November 8, as indicated by Reddit. This sunset date signifies the end of an era for the blockchain-based reward system, but Reddit remains dedicated to evolving and delivering new products that cater to the diverse needs of its expansive user base.