Reddit plans to sunset its blockchain-based reward service Community Points
Social media platform Reddit plans to drag the plug on its blockchain-based reward service Neighborhood Factors.
“The regulatory setting has added to scalability limitations. Although the moderators and communities that supported Neighborhood Factors have been unimaginable companions, because it’s advanced, the product is not set as much as scale,” Reddit wrote in a message reviewed by The Block.
“Shifting away from Factors permits us to spend money on merchandise that present worth to extra Redditors,” it added. “We’ve additionally launched, or are actively investing in, a number of merchandise that accomplish what the Neighborhood Factors program was aimed toward.”
Reddit will sundown Neighborhood Factors by Nov. 8.
Reddit’s blockchain ambitions
Neighborhood Factors first launched in 2020 as a method to reward customers for constructive exercise in sure subreddits, comparable to receiving a considerable amount of upvotes for a remark or publish, with the objective of augmenting consumer engagement and communities.
The factors customers earned had been ERC-20 tokens saved within the platform’s crypto pockets referred to as Reddit Vault. Redditors might then spend their Neighborhood Factors on perks comparable to emojis or badges, after which the factors could be burned.
Although Neighborhood Factors launched on Ethereum, the service migrated to the Layer 2 Arbitrum Nova in August of 2022 to decrease transaction prices and enhance scalability, The Block beforehand reported.
