Social media platform Reddit plans to pull the plug on its blockchain-based rewards service Community Points.
“The regulations have increased scalability limitations. While the moderators and communities that supported Community Points have been great partners, as the product continues to evolve, it is no longer suitable for scaling,” Reddit wrote in a post reviewed by The Block .
“Moving away from Points allows us to invest in products that bring value to more Redditors,” it added. “We have also launched or are actively investing in several products that achieve what the Community Points program aimed to achieve.”
Reddit will stop community points before November 8.
Reddit’s blockchain ambitions
Community Points were first launched in 2020 as a way to reward users for constructive activity on certain subreddits, such as receiving a large number of upvotes for a comment or post, with the aim of increasing user engagement and communities.
The points users earned were ERC-20 tokens stored in the platform’s crypto wallet called Reddit Vault. Redditors could then spend their Community Points on perks like emojis or badges, after which the points would be burned.
Although Community Points launched on Ethereum, the service migrated to the Layer 2 Arbitrum Nova in August 2022 to reduce transaction fees and improve scalability, The Block previously reported.