Reddit has announced it is winding down its Community Points program that utilized blockchain-based tokens to reward users. The company said the effort needed to scale Community Points was too high given regulatory challenges.
Community Points were introduced in 2020 as Ethereum-based tokens awarded for engagement. They allowed users to gain a reputation and unlock features. However, taking the system site-wide posed scalability hurdles per Reddit.
After moving Community Points to Arbitrum Nova, Reddit still found it difficult to scale compared to other incentives like its Contributor Program. With few subreddits using Points, Reddit is shutting the program down by early November.
The challenges faced by Reddit illustrate that major blockchain adoption still faces barriers like scalability. As Reddit seeks to incentivize users, it is prioritizing more scalable programs over crypto tokens. This shows the continued difficulties of integrating blockchain tech with mainstream platforms.
#Reddit #Blockchain #Cryptocurrency
