Reddit shutting down crypto points system
Reddit will be phasing out its blockchain-based Internet points programme Community Points by early November 2023, TechCrunch reports.
The platform launched Community Points in 2020, allowing users to reward positive engagement in certain subreddits like r/CryptoCurrency with interchangeable tokens.
These tokens were stored in Reddit’s vault, which acted as a wallet. Once awarded to a user, they could be used for buying items like unique badges and animated emojis.
Reddit’s director of consumer and product communications, Tim Rathschmidt, told TechCrunch although there were future opportunities for the system, the resourcing required was too high to justify.
“The regulatory environment has since added to that effort,” Rathschmidt said.
“Though the moderators and communities that supported Community Points have been incredible partners — as it’s evolved, the product is no longer set up to scale.”
The system originally ran on the Ethereum network, which carried high transaction fees and was limited in terms of bandwidth.
To try and address this, it was transferred to Arbitrum Nova, a blockchain that runs as a scaling layer on top of Ethereum.
Even so, Rathschmidt explained that making it available to all Reddit users would be “prohibitively” expensive.
Reddit has also launched alternative rewards programmes since it first started experimenting with blockchain, which includes the ability to earn fiat money for contributions.
Rathschmidt said the shutdown would have a minimal impact, with the number of subreddits impacted countable on one hand “with a finger or two left over”.
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