In 2020, Reddit introduced Community Points. Users would get those for posting quality content, and spend them on exclusive features or privileges. And while the idea of in-community currency is not new, Reddit Community Points (RCPs) are actually Ethereum-based ERC-20 tokens: independent of the platform and totally in control of their holders.
Users can access their points from the official Reddit app through a “Vault”, which is technically an Ethereum wallet – or use any other wallet of their choice. As the Vault is created, they get a public address and a private key, so no one but their owner can withdraw or spend their RCPs. The points are distributed every month; users can claim them from their wallets within a 6-month period. According to Reddit, “Moderators get a 10% share, Reddit gets 20%, and another 20% will be reserved for the broader Reddit community”.
Within the platform, Community Points can be used to get Special Membership, buy badges, emojis, and GIFs, or tip content authors. They give voting privileges and serve as an indicator of reputation, as the balance of RPCs is now shown next to the username. The points can also be transferred to any other Vault or Ethereum address. To make the transactions more convenient, Reddit covers theEthereum gas feefor those users who are using the Vault. As the points are spent, they are burned, and half of the burnt ones are included in the next month’s distribution.
Each subreddit can choose its own token, as well as how it will function. RCPs were first launched in two subreddits: /r/Cryptocurrency, with the latestcrypto coins newsand everything else related to crypto, and /r/FortniteBR, dedicated to the Fortnite: Battle Royale online game. Their tokens are $MOONS and $BRICKS, respectfully.
So what is RCPs’ role in the bigger picture? Well, Reddit is self-proclaimed “the front page of the internet”, and not without a reason. Every day around 52 million active Redditors hold discussions on every conceivable topic, from memes to sociopolitical issues of world importance. I believe that thanks to the network’s huge user base, the introduction of Community Points is another step towards the popularization of cryptocurrencies.