Rumour: Reddit Community Point System to be Released on Ethereum Blockchain.
From a video posted on Reddit, there appears to be a video leak about the details of the Reddit community points system and how it will work within the social media platform.
The video shows two sections including the wallet part and the document part. But then, the document part has two sections, the Frequently Asked Question page and the Introduction page.
The video claims to confirm Reddit’s ethereum based token ‘Points’ system. The community points serves as a new tool representing the ownership of a subreddit.
The token will encourage engagement on the platform whereby users will earn based on activity on the platform. Users can earn points by contributing to the subreddit, such as posting and commenting.
The content of the document says that the Community Points will comprise ERC-20 tokens created on the Ethereum blockchain:
“Community Points are fully controlled by the people who own them. They live on the Ethereum blockchain, which uses the same technology to guarantee property rights and control. Even Reddit cannot take them away.”
How the Community Points Token Works:
The points will be available to subreddits that opt in to the point system, where each subreddit can give the points a custom name.
From the documentation, the token can serve a variety of use cases including purchasing premium memberships and voting in polls. Users will get to use emojis, gifs and have custom avatar attached to their profile.
Also the community point system will feature a micropayments-like system where users can tip and transfer to one another.
The platform also allows subreddits to create a use case for their own tokens, somethimg similar to Smart Media Tokens from Steemit Blockchain.
“As a unit of ownership, Points can be used in different ways by different communities. Over time, communities will find ways to use points that are unique to them and fit their culture.”
The Token Distribution:
From the document copy, Reddit will distribute 50 million Points to existing Reddit users based on how much karma points the user has generated before the token goes live.
The points earned by users will be shared monthly based on contributions made to subreddits. Users will have to claim their points from the Ethereum blockchain using a signature.
Users who fail to claim their points within a period of six months will have their points removed while new users who fail to claim their points by signing on the blockchain will get a automated signing.
Moreover, half of all points generated by a subreddit will be distributed to specific contributors of each ommunity.
Where 10 percent of it will be shared amongst the moderators, and then 20 percent of it will be kept for both Reddit and other communities.
Other Special Features Includes Token Burn:
Reddit will activate a token burn mechanism where points that are used to buy membership will be burned. This will make each other person’s subreddit point to go up, rewarding everyone.
Reddit will also burn points rewarded through fiat payments for users who will opt in to use fiat payments when buying membership.
Additionally, the document copy asserts that half of the total burned token will be reintroduced into the system again every four weeks.
Also, an additional 50 million token will be created after the first year of token launch, where the amount to be distributed on each cycle will be reduced till it reaches a 250 million capitalization.
On the other hand, Telegram is having issues with SEC considering the progress of its gram token launch for its social media app.
Meanwhile the Telegram TON Network is already on testnet since last year.
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