- The social media platform Reddit announced last night that it has launched a new Ethereum-based reward system.
- The system will issue two Ethereum blockchain-based tokens $MOONS and $BRICKS, which users can earn for creating quality content.
Already in mid-April, there was a rumor that Reddit was experimenting with a new loyalty point system that issues tokens on the Ethereum blockchain. At that time, Reddit was not prepared to comment. Yesterday evening, however, the company published a presentation that gives a more detailed introduction to the new „Community Points“ project.
Collect loyalty points on the Ethereum blockchain
The presentation shows that Reddit will use the Ethereum network to create special incentives for the creation of high-quality content. The so-called „Community Points“ can be collected and used for premium features on the platform, such as badges, individual GIFs and some other features.
Reddit plans to issue two new ERC20 tokens called $MOONS and $BRICKS during the beta phase, which will be distributed to members of the subreddits /r/Cryptocurrency and /r/FortniteBR respectively as part of the new „Community Points“ initiative. Reddit explains that in the beta phase, only these two communities will be used for the points and feedback will be gathered first:
We are continuously experimenting to explore features that appeal to our users and communities. For Community Points, we work with only two communities to test this feature and collect feedback from our users.
The Community Points are linked to the Ethereum blockchain so that neither Reddit nor any other third party can access or influence them. The user decides for himself/herself what the points are redeemed for. When the community points are spent, Reddit does not benefit from them, instead the tokens are „burned“. Reddit describes that this increases the percentage of points spent by all members, so the entire community will benefit.
Furthermore, the community points can be freely transferred between users. If someone writes a great post, points can be distributed by clicking on the user’s avatar. The points can also be transferred to other editors or to any Ethereum blockchain address. The community points are distributed to the community on a monthly basis, based on the number of posts made by users. However, the community decides whether the accumulated statistics are final or require modification:
Every four weeks, Reddit will publish a list showing how much karma each user has earned in the community during this period. After that, the community has 1 week to review the list and suggest changes if necessary.
To redeem the points, an Ethereum Wallet sends the points on behalf of the user to a Smart Contract on the blockchain, which verifies and issues the points. Exactly from the moment the final data is published, the users have 6 months to claim the points before the claims expire.
For the start, 50 million points will be distributed based on the karma earned in each subreddit. Next year 50 million more community points will be distributed. However, Reddit points out that this project is still a beta phase and changes may follow.