Reddit’s Reputation Based Token Rewards System Will Shift to Ethereum Blockchain Next Year
Reddit, well-known news aggregation and social media platform, has affirmed that the tokenized rewards facility will shift to the Ethereum blockchain in the months ahead.
Reddit has also officially disclosed its system of Community Points and pointed out that it would be offered on trial to selected groups over the next two days.
Nevertheless, at least until autumn 2020, the rewards system will function on a testnet. In this regard, a Reddit post affirmed that points will include ERC-20 tokens.
But, the system will not be shifted onto the Ethereum mainnet until the beginning of beta stage.
Initially, the system will be hosted on the Rinkeby testnet. In beta stage, following the migration, a bouquet of Ethereum-based smart contracts will process transfers, disbursement and other functions highlighting the reward covenant.
Points balances accumulated, in the meanwhile, will also be rolled forward.
Points owned by each subreddit will carry a distinct name, with “Moons” being the crypto reward tokens for the subreddit.
Community Points will be disbursed on a monthly basis after taking into account activities of individual users within a subreddit, for example commenting or posting.
The post points out users can trade “Moons” without any restrictions. Additionally, the tokens can be used for several facilities offered within the r/Cryptocurrency community.
Currently, Moons can be utilized to portray recognition, GIFs, unlock badges and other features, and make votes more valuable in polls.
Initially, users will be awarded a certain quantity of tokens based on their score that underlies the prevailing recognition system, referred to as “karma”, with 50 million Moons set aside for initial disbursement throughout the r/Cryptocurrency subreddit.
In the month that follows, $5 million Moons will be awarded based on user activity, with the aggregate set to decline by 2.5% from the set limit of 250 million.
Speculation over a blockchain powered recognition based rewards plan initially came up in early April after a screen recording giving an outline of the “points” aspect was posted on the r/Cryptocurrency subreddit.
Another video posted after some days included a step by step guide of the FAQ for the “Community Points” platform, which seems to affirm that the rewards aspect would be rolled out on Ethereum blockchain.