Reddit has confirmed that its tokenized rewards will migrate onto the Ethereum blockchain later this year.
On May 13, Reddit officially revealed its Community Points system, announcing that the feature would be rolled out across “limited communities.” However, the rewards system will operate on a test-net until autumn 2020 at the earliest.
A Reddit post confirmed that points will comprise ERC-20 tokens. However, the system will not be migrated onto the Ethereum mainnet until after beta.
While the system will initially manifest on the Rinkeby testnet while in beta, a suite of Ethereum-based smart contracts will execute transfers, distribution, and other operations underpinning the reward protocol after the migration.
Each subreddit’s points will be donned with a unique name, with the cryptocurrency subreddit’s reward tokens donned as “Moons.”
Community Points will be distributed monthly based on individual users’ activity within a subreddit. Moons can be freely traded by users, or used for a number of utilities within the r/Cryptocurrency community.
Currently, Moons can be used to display reputation, unlock badges, GIFs, and other features while adding weight to voting in polls.
Users will also receive an initial distribution based on their score under the existing reputation system- “karma” with 50 million Moons slated for initial distribution across the r/Cryptocurrency subreddit.
From there, the following month will see $5 million Moons shared among users based on activity, with the total set to decrease by 2.5% each month towards an intended cap of 250 million.