Reddit will discontinue its Community Points feature on November 8 due to scalability concerns
Reddit has announced its decision to discontinue its blockchain-based rewards service, “Community Points,” due to scalability issues. In an official statement made on October 17 in the r/cryptocurrency subreddit, a Reddit team member acknowledged the platform’s recognition of potential future opportunities for Community Points but stated that there was no viable way to implement it on a large scale across the platform.
As a result, the Community Points service, including the special memberships feature, will be phased out by November 8. The Reddit team member also mentioned that after this date, Points will no longer be visible in users’ Reddit Vaults, and users will no longer earn Points in their communities.
Reward for participation
Launched in May 2020, the community points feature rewarded users for positive engagement in specific subreddits, using Ethereum-based ERC-20 tokens stored in Reddit’s “Rеddit Vault” crypto wallet. These tokens initially operated on the Ethereum network and later migrated to the Arbitrum scaling solution for improved scalability, with each subreddit having its unique token, like Moons (MOON) for r/cryptocurrency and Bricks (BRICK) for r/FortNiteBR, which users could spend on badges and exclusive items.
Following the initial announcement, the r/cryptocurrency moderator, known as “CryptoMods,” expressed their disappointment, revealing that they had only recently become aware of this decision.
“Your Moons are safe and won’t be burned. Reddit is relinquishing control over the contract, and transfer functionality remains intact,” they reassured.
Following the announcement, MOON and BRICK tokens witnessed a substantial decline in value, prompting widespread disappointment and anger among Reddit users and crypto enthusiasts. Pseudonymous trader Byzantine General shared a screenshot on Twitter, highlighting MOON’s price drop of nearly 90%.
In response to the initial post on r/cryptocurrency
Reddit user “Bunker Beans” expressed their frustration: “Reddit has let down the entire r/cc community in a matter of hours. I’ve canceled my special membership, and I’m done with this platform. I sincerely hope those responsible for this mess face consequences. It’s a complete disappointment.”
