Reddit

Reddit Launching a Cryptocurrency

Reddit

The social network Reddit has launched a beta test of two tokens based on the Ethereum blockchain. According to The Block, $MOONS and $BRICKS tokens are now used to reward participants in the Community Points program.The company claims that the earned points can be used to purchase special badges, emoticons, GIFs and much more, according to the announcement of May 14, 2020.

$MOONS and $BRICKS are ERC-20 format tokens that are issued to participants of the subreddits / r / Cryptocurrency and / r / FortniteBR for their contribution to the development of the corresponding community. Users can get tokens by creating content for a social network and leaving comments on other people’s posts.

With the help of this cryptocurrency, it will be possible to gain access to exclusive community properties. For example, for tokens you can buy animated emoticons and a special profile status. Tokens are also used to vote and reward other members.

Between members of the community, who have made their contribution to developing and have a feed of at least 100, there will be a split of 50 million tokens. In the next month, another five million tokens will be issued, each with a subsequent monthly decrease of 2.5%. The release of tokens will be stopped as soon as the limit of 250 million tokens is reached.

Reddit Launching a Cryptocurrency
Reddit Launching a Cryptocurrency

Reddit users can already create a repository where they can view the remainder of tokens from various subreddits, as well as receive and spend points. In addition, specialists can participate in the bug search program.

Social network members are already invited to create a Vault wallet, which is a platform for managing tokens. In Vault, program participants can view the remainder of the tokens of various subreddits, as well as receive and spend cryptocurrency.

To start earning community points, Redditor must create an account in Vault built into Reddit. By scanning the QR code. In the store, users can view their community points earned for several subreddits, claim or spend points.

When you create your repositories, the Ethereum public address and private key are generated. It is expected that users will safely back up their private keys to ensure that they do not lose their points, even if they lose their mobile devices.

According to the team, community points are based on smart contracts and are stored as ERC-20 tokens on the Ethereum blockchain.

Also, users do not need to worry about paying transaction fees themselves. Since the transfer of transactions on the blockchain requires the payment of fees, and the vast majority of Reddit users do not own a cryptocurrency, the social network took over this function.

Like other ERC-20 format tokens, $MOONS and $BRICKS are at the complete disposal of their owner – they cannot be written off without presenting a private key that is stored directly with the user.

According to representatives of Reddit, the loyalty program will be released from beta testing by the end of summer. During this time, the $MOONS and $BRICKS tokens will be circulated in the Rinkeby test network, so wallet balances can be reset. However, since tokens work on the Ethereum blockchain, they cannot be managed after the issue of Reddit. After the program exits beta mode, tokens earned by users will be transferred to the Ethereum main network.

It is worth noting that currently there are a number of social networks based on the blockchain. For example, Reddit has a decentralized counterpart – the Steemit platform. The project is developing successfully, recently its community migrated to the Hive.io blockchain due to a conflict with Justin Sun. The startup Block.One also has its own social blockchain network Voice.

At the end of March, the company invested an additional $ 150 million in the development of this project. However, it is Reddit that, thanks to its huge user base (about 430 million active users each month), can make the use of blockchain in such projects a common practice.

Coinbase CEO Brian Armstrong believes that this event will have far-reaching consequences for the cryptocurrency industry.

According to Armstrong, the owners of the resource competently approached the organization of the initiative in the legal sense by launching a utility token with clearly defined areas of application.

Brian also added that in general, this is a very good implementation and model that other crypto startups will be able to adhere to when launching tokens to form online communities with real value. He noted that Reddit was finally able to answer the question of what is the real use of cryptocurrencies.

The integration of blockchain and cryptocurrencies into platforms of social networks is discussed for a long time. It is possible that after this pilot Reddit will issue tokens in other active credits, or even a single token for the platform.