Reddit to Retire Blockchain-Based Community Points
Reddit, one of the internet’s most prominent social news aggregator platforms, has recently announced its decision to discontinue its blockchain-based rewards program known as Community Points. This decision, which marks the end of an era, comes as Reddit shifts its focus towards alternative programs designed to enhance user engagement. Community Points, a feature introduced in 2020, allowed Redditors to earn rewards for their active participation in subreddits and various community activities.
However, the platform now deems it necessary to bid farewell to this once-famous feature, citing resource constraints and a need to prioritize other scalable solutions. As of early November, Redditors will no longer be able to earn or redeem Community Points, signaling the end of this unique blockchain-based rewards system.
The Transition Away from Community Points
In a recent report by TechCrunch, Reddit’s director of consumer and product communications, Tim Rathschmidt, confirmed the imminent shutdown of Community Points. He stated, “Though we saw some future opportunities for Community Points, the resourcing needed was unfortunately too high to justify.” This decision reflects Reddit’s strategic shift towards more sustainable and scalable options to cater to its diverse user base.
According to Reddit, the initial purpose of Community Points was to recognize and reward Redditors for their contributions to the platform’s subreddits and other activities that benefitted the community. These blockchain-based points could be exchanged for Ethereum, one of the leading cryptocurrencies. However, the program has evolved over time, and the platform now considers it unsuitable for further scalability. Consequently, Community Points will be phased out, giving users less than a month to collect and redeem their points before they are permanently retired.
Reddit’s decision to retire Community Points is primarily attributed to the program’s high operating costs, which are no longer justifiable given the resourcing required. The platform aims to allocate its resources more effectively to meet the evolving needs of its user base.
The Role of Community Points
Community Points were more than just a reward system; they played a pivotal role in enhancing the credibility and reputation of Redditors. Users could utilize these points to access special features and purchase memberships within the platform. Once spent, the points were effectively “burned.” To facilitate this process, Reddit had introduced the Vault, which acted as a crypto-wallet to store and manage these points.
The introduction of Community Points represented Reddit’s foray into the blockchain space. Redditors could opt in and start earning points as long as they contributed positively and provided assistance to their fellow community members. This innovative system allowed users to exchange their earned points for Ethereum, providing a tangible value to their contributions.
However, Community Points were not Reddit’s sole venture into the blockchain arena. The platform also featured a “Blockchain Wallet,” which saw a remarkable surge in transaction activity within the community. Notably, Redditors purchased over 3 million NFT Avatars through this wallet within just a few months of its NFT marketplace launch in July 2022. This achievement underscored the potential of blockchain technology in enhancing user experiences on the platform.
In the ever-evolving landscape of social media platforms, Reddit’s decision to retire its blockchain-based Community Points marks a significant shift in its approach to user engagement. The move, driven by resource constraints and a need for scalability, signals Reddit’s commitment to providing its users with innovative and sustainable features. While Community Points may soon be a thing of the past, the platform continues to explore the possibilities of blockchain technology through its Blockchain Wallet and NFT marketplace. As Reddit bids farewell to Community Points, it does so with the promise of more exciting developments on the horizon to enrich the Reddit experience for its dedicated community of Redditors.