Reddit will close the Community Points program on the blockchain

The social platform Reddit announced the closure of its Community Points program, designed to reward creators and developers. This was reported by The Block with reference to the team’s statement.

“The moderators and communities that support Community Points have been wonderful partners. However, as the product matures, it is no longer designed to scale. Eliminating the rewards program will allow us to invest in products that benefit more Reddit users,” said platform spokesman Tim Rathschmidt.

According to him, one of the reasons for closing the program was the tightening of the regulatory framework for crypto projects.

Let us remind you that the Community Points service was launched in 2020. It involved rewarding users for comments and posts that received a large number of votes. The program was expected to increase audience and community engagement.

The points users earned were in the form of ERC-20 tokens. They were stored in the crypto wallet of the Reddit Vault platform. Reddit users could then spend their points on various perks.

Although Community Points was launched on the Ethereum blockchain, the service migrated to the Arbitrum Nova L2 network in August 2022 to reduce transaction costs and improve scalability. In October 2022, Reddit users created more than 3 million crypto wallets.