The r/cryptocurrency Subreddit of Reddit Has Given Up Ownership of the Moons Token Contract

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Last Updated on December 3, 2023 by Bitfinsider

The Reddit r/cryptocurrency subreddit gave over administrative control of the contract that powers its token, Moons.

The moderators of the subreddit relinquished authority of the token’s contract, which is hosted on the Arbitrum Nova network. This step secures the contract’s state, ensuring that it cannot be changed and that no new tokens can be issued.

The decision follows Reddit’s previous decision to discontinue its community points scheme, which launched the Moons currency in 2020.

The moderators also burnt 98,000 Moons tokens from the community pool, reducing the total supply from about 126 million to 83 million.

“This is a significant milestone because the community now has assurance that there will be no further changes to Moons’ contract in the future,” stated the official announcement on the subreddit.

Moons tokens were part of Reddit’s community points program for the subreddit, which was launched in 2020 to encourage user involvement. The program’s cancellation, revealed by Reddit in October, had an immediate impact on the market value of the Moon token. Within hours, the price of Moon tokens plummeted from $0.25 to less than $0.04.

A few weeks later, the token’s value recovered after the subreddit moderators agreed to relinquish management of the contract in November, ensuring the token’s continued existence independent of Reddit’s community points scheme and any centralized governance.

Since confirming the plan to remove ownership of the contract, the value of Moon tokens has skyrocketed, rising more than 200% from $0.05 to $0.2. The token is currently trading at $0.15.

On-chain data revealed that many moderators linked with the subreddit liquidated huge amounts of Moons prior to Reddit’s public statement. These moderators were dismissed from their jobs as a result of these transactions.

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