Reddit is working actively on its Blockchain-based points system, and it has revealed more details about the same. A Reddit user named Magocrypto has posted a video on Reddit, which reveals important information about the platform’s blockchain-oriented rewards system, including the fact that it will be powered by the Ethereum Blockchain.
In an interview with the crypto news platform Decrypt, a Reddit spokesperson confirmed the news stating, “We continuously experiment with ways to support communities on Reddit. In this instance, we’re working with one community to test a feature that represents a user’s involvement in a community. We value and seek out community feedback as we continue to explore features that engage our users and communities,”
More about Reddit Points
Reddit clarified that the points are a way to value a user’s contribution within a community. Point balances will be displayed alongside user names on posts and comments. This is meant to highlight the most important members of a particular community.
To date, Reddit offered free Karma to those whose posts were upvoted. However, the implementation of the points system will instill real value, as users will be able to use these points to buy Special Memberships, which will, in turn, unlock a number of features like GIFs, emojis, etc.
Furthermore, every time a point is spent, it will be destroyed. This is somewhat similar to the Token Burning Mechanism that is used to increase the value of tokens by reducing supply. In this case, as well, burnt points will mean that the shares of other point holders increase. Reddit says that this system is a way to benefit the entire community as a whole.
These points will be distributed based on the number of karma a user has. Reddit will charge 20% of new pits, out of which 10% will be offered to Reddit moderators. Initially, 50 million coins will be up for distribution, and another 50 million will be added in the first year. The total points in circulation will have a cap of 250 million.