By Tom Blitzer
Key Insights:
- Reddit ends its innovative Community Points reward system.
- Regulatory complexities and scalability concerns heavily influence the platform’s decision.
- As Community Points phase out, Reddit redirects its efforts towards more intuitive and user-centric reward alternatives.
Scalability Concerns and Regulatory Challenges Prompt Decision
Reddit, the widely recognized American social news platform, has unexpectedly terminated its blockchain-based Community Points system. Set to be implemented in early November, this move is primarily attributed to scalability issues and the ever-changing regulatory environment.
The Rise and Fall of a Novel System
Launched with much anticipation in 2020, the Community Points system emerged as a fresh method to reward users. It was designed to allow members to accumulate ERC-20 token-based points as a token of appreciation for their quality contributions to specific subreddits. For example, users of r/CryptoCurrency had the opportunity to earn “moons,” while the communities of r/FortniteBR and r/EthTrader could gather their distinct “bricks” and “donuts” tokens. However, the sun is now setting on this innovative system.
Tim Rathschmidt, Reddit’s consumer and product communications director, provided insights into this development. He mentioned, “The potential of Community Points was evident. However, the escalating resources it demanded became a significant concern. The evolving regulatory backdrop further intensified the challenges.” He extended his gratitude to the moderators and communities that supported the system but also highlighted its inherent limitations in terms of scalability.
Furthermore, Rathschmidt emphasized Reddit’s unwavering dedication to refining community governance. He added, “Our team is diligently exploring products that align with the objectives of the Community Points system. These new alternatives are designed to be more user-friendly and straightforward for our community to adopt.”
Navigating New Avenues
Besides the Community Points initiative, Reddit has been actively enhancing its reward mechanisms. Recently, the platform unveiled the Contributor Program. This new venture encourages users to produce top-tier content, with the added incentive of monetary rewards for exceptional contributions. Additionally, Reddit Gold, a cherished premium feature, underwent significant changes. It once served as a medium for users to financially back their preferred creators. However, this feature ended in July, making room for the more encompassing Contributor Program.
While some might infer that discontinuing Community Points is a strategic move to spotlight the Contributor Program, Rathschmidt offers a different perspective. He clarified,
“Several benefits that were unique to Community Points have now been seamlessly integrated into other offerings, such as subreddit karma and gifs.”
It’s worth noting that although the official page detailing Community Points has vanished, an archived version from September is still available for those keen on revisiting its history.