Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Reddit Kills Crypto Rewards Program

Reddit Kills Crypto Rewards Program

Cryptodaily2023/10/27 10:27
By: Amara Khatri
ARB-0.19%ETH+0.48%

Table of Contents

  • The End Of Community Points
  • Scaling Challenges on Ethereum
  • Regulatory Hurdles and Resource Constraints
  • Other Incentive Programs
  • Options For Community Governance

Due to scaling challenges, Reddit is winding down its “Community Points” program, a blockchain-based rewards system for creators and developers. 

The End Of Community Points

Social networking site Reddit is sunsetting its blockchain-based rewards initiative, Community Points. Launched in 2020, this program aimed to provide Redditors with a stake in their communities, but it's set to be discontinued by early November. 

Community Points were a form of Ethereum tokens stored in Reddit's Vault, designed to incentivize user engagement in select subreddits, fostering improved content and conversations. Once awarded, these tokens were non-refundable, creating a sense of ownership. Users could spend them on memberships, animated emojis, and distinctive badges, with the spent tokens being permanently "burned."

Scaling Challenges on Ethereum

The initial deployment of Community Points on the Ethereum blockchain posed significant challenges. High transaction fees and limited bandwidth on Ethereum hindered the program's growth. In 2022, Reddit transitioned to Arbitrum Nova, aiming to harness its scaling capabilities while retaining Ethereum's core advantages. 

However, this move also failed to address the issues, shedding light on the complexities that businesses face when integrating cryptocurrency incentives into their platforms.

Regulatory Hurdles and Resource Constraints

Tim Rathschmidt, Reddit's director of consumer and product communications, explained the decision, citing resource constraints and evolving regulatory conditions,

“Though we saw some future opportunities for Community Points, the resourcing needed was unfortunately too high to justify. The regulatory environment has since added to that effort. 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.”

Other Incentive Programs 

Throughout its existence, Reddit has explored various incentive programs. The Contributor Program, for instance, allowed users with 10 gold earned within a month or those with over 5,000 karma to initiate monthly withdrawals, effectively turning Reddit gold and karma into real currency.

This decision to discontinue Community Points is not Reddit's first termination of a rewards scheme this year. The platform previously discontinued a system that allowed users to buy gold to honor others due to community backlash, giving rise to the Contributor Program as a replacement.

Options For Community Governance

Rathschmidt suggested that Reddit's team is actively exploring alternative pathways to enhance community governance. The platform is already investing in products that are easier to adopt, understand, and align with the main goal of the Community Points program. 

In their statement, the Community Points page affirmed Reddit's commitment to finding decentralized, secure, and highly scalable solutions, recognizing that placing all Reddit users on the main Ethereum network is infeasible and cost-prohibitive.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

New spot margin trading pair — HOLO/USDT!
Bitget Announcement2025/09/12 07:46
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn

- FUN plunged 32.34% in 24 hours to $0.008938, marking a 541.8% monthly loss amid prolonged bearish trends. - Technical breakdowns, elevated selling pressure, and forced liquidations highlight deteriorating market sentiment and risk-off behavior. - Analysts identify key support below $0.0080 as critical, with bearish momentum confirmed by RSI (<30) and MACD indicators. - A trend-following backtest strategy proposes short positions based on technical signals to capitalize on extended downward trajectories.

Bitget-RWA2025/09/12 06:14
OPEN has dropped by 189.51% within 24 hours during a significant market pullback

- OPEN's price plummeted 189.51% in 24 hours to $0.8907, marking its largest intraday decline in history. - The token fell 3793.63% over 7 days, matching identical monthly and yearly declines, signaling severe bearish momentum. - Technical analysts cite broken support levels and lack of bullish catalysts as key drivers of the sustained sell-off. - Absence of stabilizing volume or reversal patterns leaves the market vulnerable to further downward pressure.

Bitget-RWA2025/09/12 06:14
New spot margin trading pair — LINEA/USDT!
Bitget Announcement2025/09/11 10:04

Trending news

More
1
New spot margin trading pair — HOLO/USDT!
2
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn

Crypto prices

More
Bitcoin
Bitcoin
BTC
$116,246.69
+0.40%
Ethereum
Ethereum
ETH
$4,637.53
-0.57%
XRP
XRP
XRP
$3.03
-1.78%
Tether USDt
Tether USDt
USDT
$1
-0.01%
Solana
Solana
SOL
$241.2
-2.21%
BNB
BNB
BNB
$928.63
-1.22%
USDC
USDC
USDC
$0.9998
+0.00%
Dogecoin
Dogecoin
DOGE
$0.2757
-4.56%
TRON
TRON
TRX
$0.3504
-0.12%
Cardano
Cardano
ADA
$0.8895
-2.94%
How to sell PI
Bitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter