Sumit BeraWed, Jun 10, 2020 11:00 AM
Reddit Tokens About to Release: all You Should Know About Moons & Bricks
You will know what reward program started on Reddit, what tokens are used there, and how safe and reliable this idea looks.
What is it and how it works?
On May 14, 2020, the famous Reddit forum started testing the Community Points user reward system for actively commenting and creating publications.
So far, not all sections of the forum (they are called subreddits) are participating in this program, but only two r/Cryptocurrency and r/FortniteBR.
r/Cryptocurrency tokens are called MOONS, and r/FortniteBR tokens are called BRICKS (as the name of these subreddits implies, these are the cryptocurrency and game sections of the forum, respectively). Coin management, balance viewing (which will be publicly displayed on the forum) will be performed on the Vault platform and in Reddit's mobile app. You can read more and immediately start your Vault on the official page.
Is it reliable?
Both tokens are based on the Ethereum platform, the ERC-20 standard (in essence, these are smart contracts). Vault is an Ethereum wallet designed specifically for Reddit users. According to Reddit, the system was tested for cybersecurity by Trail of Bits. The creators also draw attention to the fact that tokens cannot be transferred without a local private key of the user and are at his full disposal.
Until the end of testing, all tokens operate in the Rinkeby test network, and after this, they will be transferred to the Ethereum main network. Testing will last until the end of summer, and the transfer of tokens from the test network to the main one will take place tentatively at the end of 2020.
How to get and how to spend these coins?
For now, Reddit members can use tokens to vote, encourage content creators, and transfer funds. Tokens are built on ERC-20, so in the future users will be able to transfer funds to other ERC-20 compatible wallets. Since many users do not own cryptocurrencies, the transaction fees (“gas”) will be completely "on the house" (i.e. Reddit).
First, it is planned to distribute the first 50 million points based on the Reddit karma system. Then, in the first year, another 50 million points. Gradually, the amount of distributed points will decrease with every distribution round. The distribution will be over when the total sum of points reaches 250 million Community Points.
Also, percentages are provided for Community Points, which will be monthly received by participants for certain merits: moderators get 10%, 20% goes to Reddit itself, 20% is reserved for the community. The rules are written in more detail on the official page of the rewards program.
How does it go?
Reddit’s co-founder Alexis Ohanian is optimistic about cryptocurrencies and believes that “crypto spring” has come.
According to DappRadar, which shows informative statistics, in the first two weeks since the launch of the rewards program, more than 15 thousand participants conducted more than 18 thousand translations. In total, 15 million tokens circulate in the network. At the same time, the Fortnite gaming community holds 4.5 times more tokens than the cryptocurrency community: 13 thousand vs. almost 2 thousand. 15.3 thousand transfers were made in r/FortNiteBR, and only 3.3 thousand in r/CryptoCurrency.
We think this is due to the fact that gamification (to which this reward program belongs) works better among gamers than among those interested in cryptocurrencies, which are already fed up with an overabundance of different types of tokens.
Analysts note that the crypto community on Reddit has management problems. Even the example of upvotes for posts shows that the most successful content in r/FortNiteBR can gain 20 times more reactions than in inert r/CryptoCurrency (with approximately the same number of users).
So why should we care about this news?
If it were another forum, information about the launch of tokens would hardly be interesting to anyone. But according to Bloomberg, Reddit has more than 430 million active users per month. And the mentioned subreddits have a total of 2.3 million participants. Therefore, if the project is successfully tested and launched, such a large number of users will provide it with sufficient popularity. Therefore, it is possible to expand and change the scope of new tokens.