Reddit has launched two Ethereum-based tokens to incentivize the creation of “quality posts and comments.” The tokens, Moons and Bricks, were launched on the r/Cryptocurrency and r/ForniteBR subreddits respectively.
According to a slide presentation the firm released, the points can be spent on premium features and used to measure the reputation of users within the community. Users are rewarded based on their contributions to their favorite channels, with the community ultimately deciding how much each user gets.
Redditors can then either spend their tokens on unique features, such as badges and GIFs, or hoard them. Users control their tokens as these are ERC-20 tokens, so the tokens can also be transferred or moved to an Ethereum wallet.
Speaking to CoinDesk, a Reddit spokesperson stated:
We continuously run experiments to explore features that engage our users and communities. With Community Points, we’re working exclusively with two communities to test this feature and gather feedback from our users.
While the Reddit spokesperson didn’t name the communities, at the top of r/Cryptocurrency there’s a post introducing its 1 million members to the new Moons token. Similarly, at the top of the r/FortniteBR subreddit, there’s a post introducing its 1.3 million users to the Bricks token.
To start contributing and get tokens, users need to set up a “Vault.” Vaults are blockchain wallets built-in Reddit that can be created using the official Reddit app. Users then have to back up their private keys, or set up a password that can be used to restore the wallet. Reddit claims the password is secure and inaccessible.
The cryptocurrency community has largely applauded the move, with Binance CEO Changpeng Zhao claiming the social media platform has introduced 20 million new users to cryptocurrency.
BREAKING: Reddit introduced about 20M new users to cryptocurrency or their own token in a matter of seconds.
Thousands of popular websites, likely thousands of tokens.
— CZ Binance 🔶🔶🔶 (@cz_binance) May 14, 2020
It’s worth noting that if users don’t back up their wallets and lose access to their device, their tokens may be lost. On both subreddits tokens were initially distributed according to contributions users have made within them.
Reddit’s community points are on the Rinkeby testnet on Ethereum. The feature will leave the testnet and be migrated to the Ethereum mainnet once it leaves beta. As such, sending tokens to ETH wallets outside Reddit, for now, means the tokens are going to testnet addresses.
Featured image via Unsplash.