Did Reddit really launch millions of Ethereum tokens?

Last month, a Reddit user with the moniker “MagoCrypto” revealed in a number of posts that Reddit appears to be beta testing an Ethereum-based feature called “Community Points,” which would allow users to earn ERC-20 tokens for Get special access. Certain communities - are called "subreddits".

Mago said Reddit has also included basic Ethereum wallet functionality in the app for testers, of which he is one.

The project was confirmed on May 13 by Reddit administrator “Jarins” who published a post on the CryptoCurrency subreddit titled “Introducing r/CryptoCurrency Moons.”

As the leak suggests, the post states that the system being implemented is called Community Points and will exist on Ethereum, “where they are handled by a set of tools that handle balances, transfers, allocations/claims and A smart contract for purchasing special memberships to manage it."

While the post is informative, it does not explain all aspects of the project. Enter Adam Cochran, a crypto angel investor, partner at MetaCartel Ventures, and moderator of r/cryptocurrency, the subreddit this issue relates to.

Cochrane broke down the details of the project in a 2-page article published in tandem, giving a more in-depth look at Community Points than the original Reddit post.

Reddit’s Community Points Program Explained

According to Cochran, the tokens will first launch for r/CryptoCurrency and r/FortniteBR — two well-known forums that reportedly have 2,000 monthly users million active users. To the cryptocurrency community, these points will appropriately be called "moons"; to Fortnite players, the points will be called "bricks."

While other sub-tokens are expected to be launched in the future, the visual posted by Cochran mentions sub-tokens for Stellar and EthTrader, both of which appear to be participating in pre-release testing of these tokens.

These tokens will first be made available to users through a distribution scheme, while users of the forum will earn coins based on their contributions to the community and can be claimed through the latest version of the built-in Ethereum “treasury”. Reddit app on Android and iOS.

Community points will be used for a variety of purposes, including but not limited to tipping other users, purchasing badges and rewards, getting more say in certain polls or being used towards new "special memberships" Function.

Cochran explained that these features are consistent with Reddit’s attempts to move toward (or at least dabble in) more crypto-based business models.

Theoretically, they can be used for anything. Maybe one day we will buy coffee using Ethereum tokens obtained on the CryptoCurrency subreddit.

Reddit will not be using Ethereum’s mainnet…

One revelation Cochran conveyed outside of the mid-level post was that, for now, community points will be on the Ethereum software on the Rinkeby testnet, which is The contract address of MOON tokens. The Reddit post states that the points will remain on the testnet until they exit beta after this summer.

This means that it is temporarily difficult to integrate these points into platforms like decentralized exchanges or DeFi, which can increase their functionality and adoption.

But this may be for good reason: due to the large number of users accessing the subordinate bonds involved in the trial, and the already increasing Ethereum fees, by keeping Moons and Bricks transactions on the mainnet, it can Minimize blockchain blocking now.

Scaling for Ethereum

Although the project is still in the beta testing/pilot stage, analysts expect Reddit’s new token system to be huge for Ethereum.

Under the assumption that community tokens will eventually be released to the entire Reddit user base, Mythos Capital founder Ryan Sean Adams shared the following tweet outlining why these new Ethereum tokens make him so optimistic .

From his perspective, since Reddit is the seventh largest site in the world for a huge Gen Z audience - 64% of users are said to be between the ages of 18-24 - bringing cryptocurrency functionality directly into the app would trigger Ethereum’s widespread adoption makes ETH “undervalued.” With over 430 million daily users, this may be true, but it’s unclear to what extent Reddit will “scam” Ethereum. And how young people are adapting to cryptocurrencies, if at all.

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