Reddit’s Community Points program, a blockchain initiative developed to encourage creators and developers, will be discontinued on November 8, as per the post by the community team of Reddit.
With Moons (MOON) falling 85%, Bricks (BRICK) dropping almost 70%, and Donuts (DONUT) declining 60% on the news, the move caused the value of tokens linked to the program to crash.
Community Points, which were first introduced in 2020, gave subreddit moderators the ability to award contributors with cryptocurrency tokens, such as DONUT in r/ethtrader, BRICK in r/Fortnite, and MOON in r/CryptoCurrency. However, Reddit has had trouble bringing the program to a wider audience.
In the post, Reddit’s community team wrote, “Though we saw some future opportunities for Community Points, there was no path to scale it broadly across the platform.”
Community Points were originally developed on top of Ethereum before moving to the Arbitrum Nova layer-two solution last year to increase efficiency and reduce costs. However, regulatory restrictions made scaling Community Points even more difficult.
Yet, the issue persisted when implementing Community Points across the entire network, despite the modification. The company prioritizes rewards programs like the Contributor Program that are more comfortable to scale, according to Tim Rathschmidt, Reddit’s director of consumer and product communications.
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