Reddit has officially rolled out the trials for its Ethereum-based Community Points for two subreddits
It seems the Reddit rumor has set foot on the cryptocurrency market, namely the Ethereum network, which is gradually coming to fruition. They officially rolled out the trials for its Ethereum-based Community Points for two subreddits.
Reddit was testing Ethereum-based ERC-20 tokens called “Community Points”
This is information shared by a Reddit user named Wap MagoCrypto. According to him, hundreds of millions of active users have attached an Ethereum address to the account of a limited group of users. Furthermore, it seems that this is because Reddit is testing Ethereum-based ERC-20 tokens called Community Points – giving users access to certain aspects of the community.
UPDATE: Reddit’s blockchain-based points system confirmed to be on Ethereum, and lot more! from r/CryptoCurrency
These community points will be distributed as a reward for platform users as an incentive for creating quality posts and comments. Each subreddit community will ultimately decide on how many points a user will receive.
These points will represent the reputation of a user in a community and can be traded for premium features like badges, custom emojis, and GIFs on comments.
A Reddit user stated:
“Community Points are a way for Redditors to own a piece of their favorite communities. As a unit of ownership, Points capture some of the value of their community.”
This new token system will be exposed to at least 20 million users
These Ethereum-based points will be first introduced in two very popular subreddit – r/Cryptocurrency and r/FortNiteBR – however, the platform did not officially announce the name of the communities. As of press time, r/Cryptocurrency has over 1 million members, and r/FortNiteBR has almost 1.3 million people in the community.
According to an analysis, Adam Cochran — partner at Ethereum venture fund MetaCartel Ventures and an angel investor in the crypto space — this new token system will be exposed to at least 20 million users:
“Today, Reddit introduced about 20M new users to Cryptocurrency in a matter of seconds. That’s how many users visit Reddit’s/r/Cryptocurrency and /r/FortniteBR on any given month.”
Reddit also specified that each community could give a curated name to these community points. To receive these points, Redditors need to open an account with “Vault,” Reddit’s proprietary blockchain wallet. The points will be distributed based on Karma earned by the community members.
The platform will initially release 50 million points and will continue pumping another 50 million over the first year. There is also a maximum cap of 250 million.
Reddit detailed:
“In addition to the regular distribution, half of each month’s burned Community Points are reintroduced into the next month’s distribution. This helps ensure that there are new Points to distribute, even after the maximum cap has been reached.”
In particular, Cochran – one of the people involved in the project construction – said there could be about 1.2 million ETH wallets operating, this Reddit feature could cause the application to skyrocket.
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