Reddit To Phase Out Ethereum-Based Incentives System, Citing Scaling and Regulatory Challenges: Report
Reddit reportedly plans to discontinue its Ethereum (ETH)-based rewards program called Community Points by next month.
Community Points allow Redditors who make high-quality contributions to the platform such as creating content and moderating to earn ERC-20 tokens that can be used to redeem badges, animated emoticons and other special features.
According to Reddit, Community Points serve as a measure of a user’s reputation in participating subreddits and give Redditors a chance to own a piece of their favorite communities.
Despite high hopes for the program, TechCrunch reports that Reddit will say goodbye to Community Points by early November three years after launching the project in May 2020.
Reddit’s director of consumer and product communications Tim Rathschmidt says Community Points faces two challenges that prompted the platform to phase out the program.
“Though we saw some future opportunities for Community Points, the resourcing needed was unfortunately too high to justify, The regulatory environment has since added to that effort. Though the moderators and communities that supported Community Points have been incredible partners — as it’s evolved, the product is no longer set up to scale.”
After launching Community Points, Reddit also rolled out other incentive systems, which include the Contributor Program that allows eligible users to convert their Reddit gold and karma into cash.
Rathschmidt says Reddit will prioritize community rewards programs that are less difficult to scale.
“Part of why we’re moving past this product is that we’ve already launched, or are actively investing in, several products that accomplish what the Community Points program was trying to accomplish while being easier to adopt and understand.”
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