Reddit Retires Community Points for More Scalable Rewards
Reddit is discontinuing its blockchain-based Community Points program to focus on more scalable rewards initiatives.
Tim Rathschmidt, Reddit’s director of consumer and product communications, expressed that while the platform saw potential in Community Points, the operational demands and changing regulatory landscape made it challenging to scale. Initially introduced in 2020, Community Points rewarded active participants in chosen subreddits. These points, equivalent to Ethereum tokens, were kept in Reddit's Vault, a cryptocurrency wallet. Once given, these points could be used for features like memberships, badges, and animated emojis. However, once spent, they were irrevocably "burned."
With Community Points on the blockchain, it served as a digital "reputation" badge. If users faced a ban from Reddit, they'd lose Vault access, rendering their points useless, though the points remained on the blockchain. Reddit confronted significant challenges in scaling this program, even after transitioning from Ethereum to Arbitrum Nova in 2022.
While Reddit has launched other community incentives, such as the moderator rewards and the Contributor Program (allowing users to convert Reddit gold and karma into cash), Rathschmidt highlighted that the company's shift isn't solely towards the Contributor Program. Instead, Reddit aims to back programs that are inherently more scalable and can reach a broader audience.
Earlier this year, following protests against its API changes and a 48-hour blackout, Reddit also ended its coin system, which let users buy Gold to reward others. The platform rolled out the Contributor Program later in September.
In summary, as Reddit transitions away from Community Points, the platform is keen on refining its reward mechanisms, aligning them with user preferences and scalability demands.
Loading Comments ...
Comments
No comments have been added for this post.
You must be logged in to make a comment.