Reddit has given its users an unpleasant surprise. The company revealed that it will be shutting its blockchain-based rewards system called “Community Points.”
It rewarded users with special tokens for being positive. The news was announced in an official statement on October 17, in the r/cryptocurrency subreddit.
Why they shut the rewards system?
Reddit claimed that there was no way to make it work well across the entire platform due to some technical challenges. This has left many users disappointed.
The reward program started was started in May 2020. The idea was to encourage better quality content on Reddit. Users would be rewarded with tokens called Moons (MOON) and Bricks (BRICK). They would use them to get special badges and items for their avatars.
The tokens, which were initially on Ethereum, now work on the Arbitrum network. The change was apparently made for better performance.
Users and cryptocurrency fans were disappointed with this news. Byzantine General, a retail trader, criticized Reddit for essentially “ruining” their community.
The value of MOON and BRICK tokens fell dramatically after the announcement. It left many users worried about the tokens they had earned. Over the past 24 hours, Reddit’s MOON token is down 74.84%, as of writing.
The decision to shut the Community Points reward system has raised many questions. Reddits surprise decision has caused a stir in the crypto community since the market has also been facing unfortunate headwinds. People who held the tokens are completely shocked.