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Reddit’s Farewell To Community Points: Navigating A New Rewarding Future

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Social news platform Reddit has announced its decision to discontinue Community Points, the blockchain-based community point rewards service, effective November 8, citing regulatory constraints on scalability as the primary reason.

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Launched in May 2020, Community Points were designed to incentivize quality content and positive engagement within various subreddits. These rewards were represented as Ethereum-based ERC-20 tokens stored in the Reddit Vault, an in-house crypto wallet service.

Initially hosted on the Ethereum network, the service later migrated to Arbitrum, a layer-2 scaling solution, to enhance its scalability. Different subreddits had unique tokens; for instance, the r/CryptoCurrency board featured the Moons (MOON) token, while the r/FortNiteBR subreddit used Bricks (BRICK). Users could utilize these tokens to purchase badges and exclusive items for their avatars.

Official Announcement By Reddit

In an official announcement on the r/CryptoCurrency subreddit, the platform’s Community team member, u/cozy__sheets, revealed the decision to discontinue Community Points. It includes Special Memberships, which will cease to exist after November 8. Users will no longer see Points in their Reddit Vault or earn them within communities.

The platform mentions regulatory challenge­s as a primary reason for its discontinuation. Despite receiving support from moderators and communities, the­ service struggled to adapt within the changing re­gulatory landscape.

The platform re­mains dedicated to the core­ idea behind Community Points, emphasizing e­nhancing community governance and empowe­ring contributions. As a strategic decision, ending Community Points will enable the platform to allocate resources toward more scalable alte­rnatives, such as the Contributor Program.

This program allows eligible­ users to earn cash based on the­ir karma and gold from qualifying contributions, presenting a simpler and more­ accessible option. With the rollout of an improved reddit.com experience, the platform recognized that Community Points would not seamlessly integrate into the updated platform without significant resource allocation.

Therefore, the decision was made to shift resources to more scalable programs like the Contributor Program. Community Points, including Special Memberships, will be phased out by November 8. Points in community wallets will be burned by the end of the year.

The platform expressed gratitude for the community’s involvement and emphasized that the lessons learned from Community Points would be applied to empower more communities and reward contributions in other ways, ensuring a continued commitment to the program’s spirit. The platform remains open to questions and feedback regarding this transition.

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TRC-20 Tether [USDT] Circulation On Tron Exceeds $12.4 Billion

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More than $12.4 billion in the stablecoin Tether [USDT] has been issued on the Tron [TRX] blockchain as revealed by the foundation’s CEO Justin Sun.

This development comes three weeks after the project founder had revealed a milestone of $9.3 Billion USDT issued on Tron which was achieved after 644 days. The number of USDT issued on the blockchain has increased significantly since the first-ever 10 USDT was issued all the way back on the 17th of April, 2019.

The world’s largest stablecoin is also issued on a myriad of chains including Bitcoin Cash, EOS, Liquid, Solana, and Algorand.

And for the longest time, a great majority of Tether were minted using Ethereum’s ERC20 standard. However, the minted stablecoin using the TRC20 standard has seen a much larger transaction count in 2021.

Tron has rapidly emerged as the fastest-growing blockchain for USDT issuance.

Coin Metrics
TRC-20 Tether [USDT] Circulation On Tron Exceeds $12.4 Billion 3

TRC20-based USDT has seen a higher transaction count than ERC20-based USDT tokens every day this year. According to the latest chart compiled by Coin Metrics, it was found that Tron captured more transactions than both Ethereum and Bitcoin combined.

In a recent edition, Coin Metrics’ ‘State of Network’ report had revealed,

“Tether activity has increasingly shifted over to the Tron version of the stablecoin. Since the beginning of 2021, the amount of USDT_TRX active addresses has eclipsed the number USDT_ETH active addresses.”

Why Has Tron Been Successful In Attracting More Users?

The shift in this sentiment is undoubtedly the massive transaction fee in the Ethereum network that has resulted in users looking for affordable alternatives. In the case of Ethereum, the transaction fees have risen due to rising demand stemming from the flourishing decentralized finance [DeFi], while Tron fees, on the other hand, have remained minuscule.

Hence, the TRX network has managed to attract the issuance of not just teh most popular and widely used stablecoin but also other digital assets on its blockchain. The blockchain now hosts TRC-BTC, TRC-ETH, WBTC, WETH, WLTC, and TRC-AMPL.

Moreover, Sun had also hinted that more ‘wrapped’ digital assets will be issued on the network.

DeFi Boom Catalyzes Wrapped Bitcoin’s Growth as Market Cap Nears $500 Million

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The story of DeFi in 2020 has been no less than extraordinary and the limelight is now on the world’s largest altcoin, Ethereum. More precisely, the number of Bitcoins “wrapped” and flowing on Ethereum blockchain was now in the focus. So what exactly is ‘Wrapped Bitcoin’? They are ERC-20 token backed 1:1 by BTC.

A majority of trading volume occurs on centralized exchanges with Bitcoin, but WBTC changes that. The ERC 20 format brings Bitcoin’s liquidity to decentralized exchanges [DEX] making it possible to use Bitcoin for token trades, thereby unlocking a wide array of use-cases such as lending, liquidity provision, and decentralized exchange.

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The supply of WBTC has been increasing at a staggering rate on Ethereum, the biggest DeFi ecosystem. This was primarily due to the fact that it gave the investors a way to capitalize on their BTC holdings by leveraging the added functionality and versatility provided by the wrapped token.

According to the latest chart by Skew analytics, Wrapped Bitcoins saw a new all-time high market cap after USD value locked under WBTC hit $470 million. Out of which, 97% of WBTC is locked in smart contracts, solidifying its use case as a smart contract-compatible version of BTC, according to Glassnode.

Since $183 million as recorded on 1st August to the press time figure, WBTC’s market cap has increased by over 156% in one month.

DeFi Pulse

Additionally, Bitcoins locked in WBTC were 39,104 at the time of writing, which is astonishingly high as compared to 15,521 at the beginning of the month.

The fact that BitGo holds the keys to mint tokens and the project gives a fair idea that the initiative is centralized to a degree by a chosen custodian.

Despite this, WBTC could be a blessing in disguise. The DeFi mania has spurred a lot of talks and FOMO surrounding the space seems inevitable at the moment. Hence, this could aid in Bitcoin’s potential bull run to its previously set ATH.

BTC is the biggest cryptocurrency. And converting it to an ERC 20 token to make it compatible with the Ethereum blockchain, brings more utility to the table, far more than the Bitcoin blockchain offers.

Hence, there could be a scenario wherein the investors foraying into the market opt for Ethereum, or for that matter, DeFi protocols, rather than choosing Bitcoin itself. At this point, questions regarding the very necessity of the Bitcoin blockchain would crop up, whose value, as Glassnode noted, comes from the 68 TWh of power that goes into securing the network each year. This is something that warrants serious attention.

Reddit Community Points to Harbour 430 Million Users on Ethereum

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Discussions Platform Reddit is pushing ahead with the launch of a token that will serve its social network of at least 430 million users. Last month, Reddit launched a community rewards system, bringing at least 20 million users to ERC-20-based community tokens. The rewards system, dubbed “community points,” will award ERC-20 tokens to contributors for doing small things such as posting or commenting.

Initial Plan was to Onboard Subreddits r/Cryptocurrency and r/FortniteBR 

At first, the community points were only partially targeted by a section of the cryptoverse community on the platform, with only 20 million users from both subreddits r / Cryptocurrency and r / FortniteBR. According to a press release published yesterday, Reddit has announced a new goal of scaling up its community reward points system to 430 million active monthly users.

Community Points are different and different from existing in-game Points or rewards because they are available as a real digital currency that runs on the Ethereum blockchain. As a matter of fact, Reddit is betting its odds, for community points, on r / Ethereum subreddit users that prides a following of more than 466,000 subscribers.

A Scaling Solution for Reddit Community Points is Imminent

On the other hand the scaling solution will have to accommodate millions of users;  and would take the formula of housing at least 100,000 community points; 100,000 transfers; 25,000 substitutions and 75,000 one-ff points burning. All of which, the developers are scheduling to take place within the space of only five days. 

In partnership with Ethereum, the social platform urged developers and community members to propose suitable scaling solutions; that have the ability of integrating community points on the Ethereum mainnet. The submissions proposal encouraged any submissions to revolve around decentralization, usability and scalability. 

Reddit is not the first social media platform to execute a cryptocurrency plan.  Much has been done by social media giant Facebook ahead of its much anticipated Libra coin; while on the other hand Messaging LLC- Telegram just scrapped its plans of issuing a digital token across its platform. 

The messaging platform put a full stop to its plan following massive regulatory battles with authorities.