Reddit Looking To Allow Users To Exchange Karma For Crypto

Cryptocurrencies are gradually becoming an integral part of the world’s systems. Industries and sectors continue to plot a future around blockchain technology, and ultimately, cryptocurrencies. The idea of a decentralized internet, Web 3.0, has been mooted in many quarters, and several social networks are beginning to build towards this development.

Facebook (now Meta) CEO, Mark Zuckerberg, made a popular announcement on the company’s rebranding that is geared towards a future built around crypto. Twitter will roll out tipping in crypto features, and NFTs. On the back of these developments, Reddit announced a plan in the works to allow users to exchange karma for Ethereum-based crypto tokens. The social news forum joins the list of web media giants seeking to go pro-crypto soon.

In what appears to be a move to onboard users onto a Web 3.0 infrastructure, a new engineer at Reddit made the karma-to-crypto disclosure on the 3rd of November. Rahul Kothari, the engineer at Reddit, announced that the social news website plans to decentralize the internet for the benefit of the users and communities thriving on the platform. Accordingly, members of the Reddit community and sub-communities would be able to exchange karma for cryptocurrencies, giving back value to the product’s end users.

What is Reddit’s Karma?

The word ‘karma’ is popular in many parts of the world. Karma, according to its Indian origin, is the word that describes the spiritual principle of cause and effect. The idea is set on the fundamentals of retribution or rewards for previous deeds.

On Reddit, karma has an entirely different meaning. Although it is seemingly based on the cause-and-effect element, karma is the reward, or score awarded to Redditors (as Reddit’s users are called) for certain actions like posting or commenting in the community. Reddit introduced karma into its ecosystem for several reasons.

  • Karma serves as a reward mechanism for genuine contributions and participation in communities.
  • Reasonable contributions and opinions are encouraged on the Reddit platform. Karma is a point system that allows for the community to give back to members who are known for reliable inputs.
  • The karma score of a Redditor is a good way to vet them based on their reputation within the community.
  • Users with high Karma scores can post and comment without limitations and join certain member-exclusive subreddits.

How Do Redditors Earn Karma?

Members of the Reddit web community earn Karma through upvotes on their posts or comments. The Reddit ecosystem provides avenues for community members to register their support (upvote) or dislike (downvote) for a particular post or contribution. When members upvote a comment or post, the contributor earns Karma in return. A downvote on any contribution means that the contributing member’s karma points value will be reduced. Some Redditors have managed to accumulate millions of Karma points.

Karma To Crypto— It’s On!

Reddit users like to joke about Karma, terming it fake internet points, but from the looks of things, all that is about to change. Along with plans to decentralize the web, and bring users onboard Web 3.0, Reddit is looking to begin the process of exchanging Karma for ETH-based tokens. Thus, users with considerable amounts of Karma points would be able to convert their rewards to real money.

The idea of Web3 is based on rewarding internet users with real value in crypto and integrating blockchain-based platforms with internet providers. By converting the reward means, Karma, to crypto, Reddit is bringing its 500 million active monthly users into the world of the blockchain, thereby spreading cryptocurrency adoption. In additional tweets, Rahul added that Reddit’s new structure would be permissionless, open-source, and decentralized just like crypto and that he expected the formation of DAOs and onboarding of DeFi and NFT applications.

About Reddit

Steve Hoffman and Alexis Ohanian began Reddit in 2005. Reddit is a social news website that allows for the social curation of content, allowing members to decide what they choose to interact with by voting for or against. One of the most visited sites in the world, ranked by Alexa at No. 24, Reddit boasts over 500 million active users every month.

Reddit’s recent moves— new job listings that point towards NFTs— indicate the social network’s desire to fast-track the process of bringing its users into a decentralized web. Notably, Reddit has partnered with OffChainLabs, which is building a suite of Ethereum scaling solutions, to facilitate their pro-crypto journey.

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