Reddit has announced the discontinuation of its Community Points system, which was developed on the blockchain and first launched in 2020. The reasoning behind this decision is that the blockchain scalability has proven inadequate, there is a lack of manpower for further development, and there has been an increase in stringent government regulations.
Community Points served as a motivation system for members of the Reddit community to engage in posting and accumulating coins called $MOON, which could be exchanged for special badges or emojis within the system. These coins were stored on the Ethereum blockchain and could be used for buying, selling, and trading, with hopes of increasing in value.
TechCrunch points out that Reddit will be introducing other non-blockchain-based point systems in the future. This includes the Reddit Contributor Program, which allows the accumulation of karma points and gold, which can then be exchanged for real money without the need for blockchain technology.
The Community Points system is set to be removed in early November 2023. Currently, most of the information on Reddit’s website regarding this system has been taken down.
TLDR: Reddit has decided to discontinue its blockchain-based Community Points system due to scalability issues, a lack of resources for further development, and increased government regulations. This system rewarded users with coins called $MOON, which could be exchanged for special badges or emojis. Reddit will be introducing alternative point systems that do not rely on blockchain technology in the future. The Community Points system will be removed in November 2023.