Popular social media platform, Reddit has launched a new blockchain-based point reward system on its platform to enable its 430 million users to earn tokens for their engagement on subreddits.
According to multiple Reddit sources, as published on medium today, the reward system was launched on the Ethereum blockchain as “Community Points.” The system enables Redditors to receive rewards via ERC-20 tokens for their engagement on the platform via posting and commenting.
Aside from commenting and posting on subreddits, points are also distributed for other contributions on the community, with Mods entitled to 10 percent share of each month’s Community Points, Reddits gets 20 percent, while another 20 percent is given to the entire Reddit community.
The reward system, which is currently available in a few subreddits, will be used in several ways, including buying memberships, voting on weighted polls, and boosting owners’ reputation as the point balances will be displayed close to usernames.
“Over time, communities will find ways to use points that are unique to them and fit their culture,” the report added.
Reddit’s Community Points Distribution
Notably, Reddit’s Community Points will be distributed monthly based on users’ contributions. Before the distribution, in the fourth week of every month, the platform will publish a list of contributors on each subreddits and the amount each user has earned for the month, thereby giving community members a week to deliberate and propose changes to the list.
Redditors can deliberate on the list via the creation of a new list and an accompany poll to determine who deserves to be rewarded. However, the list would be required to meet the minimum quorum.
After the one-week timeframe elapses, Reddit would then retrieve the list, finalize the contribution values, and republish the final list alongside each user’s signature, which is gotten via the creation of an ERC-20 compatible wallet, the report said.
However, recipients of the community points who do not own an ERC-20 compatible wallet would be required to create one within six months or risk losing the tokens.
As per the source, the total number of Reddit’s token is 250 million and will be distributed gradually. For a start, a total of 50 million tokens will be distributed over the first year to users based on karma earned from the community’s inception to date. The amount distributed every cycle for the remaining 200 million will continue to decrease.
The initiative would be embraced by Reddit’s over 430 million users with a possibility for the initiative to be adopted by other social media platforms, thus boosting the mainstream adoption of cryptocurrencies as well as the Ethereum blockchain.
