Last Updated on November 15, 2023 by Bitfinsider
By the end of this month, Reddit administrators want to give up all authority over the Moons contract and burn more than thirty percent of the token’s entire supply, making the r/CryptoCurrency community token “completely decentralized.”
In a late-night update yesterday, community moderators formally renounced the contract, making it unchangeable and guaranteeing that no additional Moons tokens could be issued. In order to ensure that no one has control over the contract, the Reddit admins will send it to a burn address.
According to the post, the Reddit administrators will also burn about 34% of the tokens that are kept in the “Community Tank” that they oversee, bringing the total supply down from about 126 million to 83 million. The community moderators also stated that all exchange listings for moons will stay in place and that exchanges and wallets will still be able to trade the token.
The moderator team promised to collaborate with the community to create a future strategy for moons, which would include allocating the remaining moons in the community wallet in some fashion, possibly in response to contributions from the community, tips, and contest participation. They are also developing technological innovations to boost usefulness and user experience.
Reddit’s Community Points program has a rewards token called Moons, which it revealed last month will be ending. The initiative, which debuted in 2020, gave users rewards for their involvement on the network, such as big upvotes on posts or comments. Reddit’s cryptocurrency wallet, Reddit Vault, houses Ethereum-compatible ERC-20 tokens that may be exchanged for rewards like badges and emoticons. Nevertheless, in August 2022, the service moved from Ethereum to Layer 2 Arbitrum Nova in order to solve scalability problems and lower transaction fees.
After the update, the price of moons tokens increased 240%, from $0.05 to $0.17, before stabilizing, according to CoinGecko data. Moons is trading for $0.14 right now.
Another community reward token, Reddit’s r/FortNiteBR bricks coin, increased by almost 85% in the same time frame and is now trading at $0.06.
Three years after its launch, Reddit revealed on October 17 that it was discontinuing its blockchain-based incentive program, Community Points.
“We have decided to end the Community Points beta, which includes Special Memberships, on November 8th. You won’t be able to see Points in your Reddit Vault or accrue Points in your communities after that. At the time, Reddit stated in a forum post, “Even though we saw some future opportunities for Community Points, there was no path to scale it broadly across the platform.” Regulations played a role in the decision as well.
Before Reddit made the official announcement that the Community Points program was ending, at least two moderators connected to the cryptocurrency community on Reddit liquidated a significant quantity of Moons tokens, according to on-chain data obtained two days later.
“Points were never intended to have any monetary value, and buying, selling and trading Points has always been a violation of our terms for the product,” a representative from Reddit stated.
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