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Reddit's New Contributor Program: Convert Karma and Gold into Cash

Reddit has unveiled a new contributor program that allows users to monetize their earned points. Starting now, qualifying users can translate their Reddit gold and karma points directly into real-world currency. This payout will be made monthly.

Initially, this feature is accessible only to U.S.-based users over 18 who can authenticate their identity through Persona and Stripe. To be eligible, an account should be at least 30 days old, and only monetization from non-explicit posts is allowed.

Information regarding this monetization scheme emerged earlier in an Android Authority report detailing a reverse-engineering exercise.

The amount one can cash out is determined by their karma — the total upvotes they've garnered. Users need a minimum of 10 golds in a month to cash out. If this isn’t achieved, the earnings will be carried over to the next month. Depending on one's karma count, the exchange rate starts at $0.90 per gold (for 100-4,999 karma) and goes up to $1 per gold for those with over 5,000 karma.

Drawing a parallel, X (formerly Twitter) had recently initiated a similar strategy for creators, allowing them to earn based on the traction their posts gain. However, the concern is such programs might encourage excessive or deceptive posts solely aimed at engagement.

Reddit's gold-awarding mechanism is also getting a facelift. While previously users could purchase coins for buying gold or awards for standout posts, this system is being phased out to make gold procurement more direct. To buy gold, users can long-press the upvote button in the app or hover over it on desktop. Gold prices range from $1.99 (for one) to $49.00 (for 25). Given that high-tier users can earn a dollar per gold, Reddit is retaining roughly half the payment. This update will be rolled out on the app first, with a website update scheduled later this year.

This introduction comes amidst a somewhat rocky period for Reddit, facing backlash over contentious API changes that have impacted the viability of several third-party apps such as Apollo and Reddit is Fun.

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Posted: 2023-09-26
By: dwirch
Viewed: 385 times




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