In a recent announcement made on the r/CryptoCurrency subreddit, Reddit has revealed plans to close its blockchain-based rewards service, “Community Points.” The platform cited scalability concerns as the primary reason for shutting down the service. Although Reddit acknowledged potential future opportunities for Community Points, they concluded that scaling it across the entire platform would not be feasible.
End of an Era for Community Points
The shutdown of the Community Points service, including the special membership feature, is scheduled for November 8. As a result, users will no longer see Points in their Reddit Vault or have the opportunity to earn more Points within their communities. The service was initially launched in May 2020 to incentivize higher-quality content by rewarding users with Ethereum-based ERC-20 tokens. These tokens were stored in the Reddit Vault, the platform’s in-house crypto wallet service.
Evolving Solutions for Scalability
Originally deployed on the Ethereum network, the points service migrated to the layer-2 scaling solution called Arbitrum for improved scalability. Each subreddit had its unique token, such as the Moons (MOON) token for the r/CryptoCurrency board and the Bricks (BRICK) token for the r/FortNiteBR subreddit. Users could utilize these points to purchase exclusive items and badges for their avatars.
Once the announcement was made, the r/CryptoCurrency moderator, known as “CryptoMods,” expressed disappointment upon learning about the decision. However, they reassured users that the Moons token owned by individuals would not be burned. The moderator emphasized that the transfer functionality within the smart contract would remain active, while Reddit would relinquish control over the contract itself.
The news of the Community Points shutdown had a significant impact on the value of the Reddit tokens, MOON and BRICK. Following the announcement, the tokens experienced a sharp decline. This development left many Reddit users and crypto enthusiasts disappointed and frustrated with the decision. Byzantine General, a pseudonymous trader followed by 163,000 individuals on Twitter, criticized Reddit for essentially “rugging” their community. Alongside this criticism, he shared a screenshot of MOON’s price, which had plummeted by approximately 90%.
One Reddit user, u/Bunker_Beans, expressed their strong discontent with the decision, stating, “Reddit essentially f—ed over every r/cc user in hours. I’ve canceled my special membership. I’ll never use this f—ing platform again. I hope whoever runs this cesspool rots in hell. What a f—ing joke.” This comment highlights the level of anger and frustration felt by some users who relied on Community Points.
Reddit’s decision to shut down the Community Points rewards service has disappointed and angered many users within the crypto community. Although the platform acknowledges potential future opportunities for this service, scalability concerns have forced them to cease operations. This move has left token holders and avid users frustrated by the sudden and unexpected loss of a system they had come to rely on and appreciate.