Reddit Full Steam Ahead with Cryptocurrency to Reward Good Posting
Ethereum-based tokens will be rolled out on the r/cryptocurrency and r/FortniteBR subreddits for a test run
Reddit, with over 430 million users, has launched a beta test of two tokens based on the Ethereum network. This trial will roll out on r/cryptocurrency and r/FortniteBR subreddit, which have over two million subscribers between them.
This is a step beyond what other social media sites have aspired to do; an integrated cryptocurrency payment system for rewarding good posts. Facebook has delayed the Libra project, while Telegram has now cancelled the Telegram Open Network (TON) entirely.
One key reason behind Reddit’s success is in its user demographic. While smaller than Facebook, 64% of its users are aged between 18 and 24 years of age with 69% being male—an audience that is known to be more interested in entering the cryptocurrency space.
This is an exciting test for cryptocurrencies in the real world and a significant milestone for social media platforms.
The internet first got wind of Reddit’s foray into cryptocurrency in early April. A handful of users were granted access to a wallet system that contained hints of the project. Reddit initially said it was working with one community already in the offering.
A slide presentation presented the platform’s vision of free and fair internet. It relays the narrative of the internet ruined by “glitzy rides, manicured lawns, walls, billboards, and manipulation,” and presents cryptocurrency as a way for people to “take back control.”
The tokens on r/cryptocurrency and r/FortniteBR will be named “Moon” and “Bricks”, respectively. Reddit will operate this system by running the community points as tokens on a blockchain.
These Points are ERC-20 tokens on the Ethereum blockchain, which function by allowing Redditors to “own” a part of their favourite communities.
Community Points are redeemable and allow access to premium features, such as a special membership, GIFs, badges, and custom emojis. In addition, Reddit also plans to introduce a “weighted” voting system that augments users’ votes with the highest number of Community Points.
These points are transferable through the Reddit Vault, which is similar to the Ethereum Wallet. Users have private keys to the vault, but if they lose their keys then they lose their community points.
The bill for transaction fees will be covered by Reddit for the meantime.