Reddit today announced the launch of previously rumored and highly anticipated Ethereum based tokens on its platform. The social media aggregator, posting and discussion platform will initially create two kinds of tokens for r/cryptocurrency (Moons) and r/FortniteBR (Bricks) subreddits. The beta tokens will be initially deployed on the Rinkeby testnet, with eventual migration to the Ethereum main-net.
Reddit Community Points
The community points or tokens will be distributed amongst contributors for posting quality content, based on karma ratings and upvotes. The final decision for determining the allocation of tokens to contributors will be taken via community consensus. Later, communities will be able to customize their native token also. The new token based system will allow contributors to own a part of their favorite communities and will become a measure of the user’s reputation.
They can be used to purchase premium membership, badges, animated emojis and GIFs etc. The spending of community points removes them from circulation (burning effect) and enhances value of existing tokens. If the premium membership is purchased in FIAT, Reddit will burn tokens on their behalf. The community points or tokens can be gifted, tipped and sent to other users.
Reddit Ethereum Based Wallet “The Vault”
The Reddit mobile app now come with integrated Ethereum wallet called Vault to store and manage the community points, which exist on the blockchain and aren’t controlled by Reddit itself. The vaults have to be secured with complex passwords and users can choose to export the private keys also, for usage with other ERC-20 wallets.
Significance For Ethereum Adoption
Reddit is the 19th most visited site in the world (as of 14 May 2020) and has millions of users around the globe (around 430M users in 2019). Around 20M people use Reddit on a daily basis. By introducing the tokenization and community points on blockchain concept, the site will benefit from the enhanced user engagement and retention of users. The biggest beneficiary however will be Ethereum, which will acquire millions of new active users, who would learn about the blockchain through tokens and will have their ERC-20 based wallets created with ease. This new development alone has the massive potential to further drive mass adoption and high usage of the Ethereum blockchain.
Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.
Follow us on Social Media and subscribe to our free crypto newsletter!
Diskutiere mit uns!
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Blockchain
The German Ministry Of Finance (Bundesministerium der Finanzen) or BMF recently released a position paper on the digital Euro and …
Binance announced on July 23 that it has integrated the Chainlink decentralized data oracles for its Binance Smart Chain, in …
Chainlink’s winning streak doesn't seem to end anytime soon, as the leading decentralized data oracle service on-boarded the Deutsche Telekom's …