Reddit Relies on Ethereum Technology for Community Points

Reddit as the leading online forum is testing a redesign of its bonus program for dedicated users. For this purpose, two ERC-20 tokens will be issued and initially distributed in the very popular subforums Crypto Currencies and Fortnite.

About a month ago, initial indications made the rounds that Reddit wanted to try out whether block chain technology could be used in its bonus program. Now these predictions are proving to be true, as Reddit has launched a webpage which gives details. According to this, there are two ERC-20 tokens, which will initially be issued and sent to the subforums CryptoCurrencies and Fortnite. About 1 million users are currently exchanging information on the main topic of cryptocurrencies at Reddit, and as many as 1.3 million users of the popular game Fortnite are currently using Reddit. The new Community Points, which will soon be available via Ethereum’s Mainnet, can be exchanged for special memberships at Reddit, which unlock emojis, GIFs and badges.

Ethereum and Reddit – a dream team?

The tokens Reddit now creates are basically utility tokens and not to be confused with ETH. Reddit will cover the transaction fees in the Ethereum block chain (“gas”) for its tokens, but this will at best compensate for the additional load on Ethereum’s network.

The real advantage for Ethereum lies elsewhere: Reddit users are sometimes coming into contact with the principle of crypto-currencies for the first time and are also to open a special software wallet called Vault for their tokens. Reddit and Ethereum are probably hoping that this could lead to new investors in ETH in the future. It is also conceivable that Fortnite will allow in-game purchases in ETH in the future, or that the crypto-currency subforum will become more attractive for advertisers in connection with ETH.

Bonus points through Ethereum – model also for others than Reddit?

Reddit has built up trust with its users because it does not use censorship and also defends itself against bans in individual countries. The new Community Points fit in with this image, because the organization in the block chain protects them from access and influence from outside. Only the respective user decides whether to use them for himself or reward other users with them. So the concept certainly has charm. For example, the coffee house chain Starbucks is also working with Bakkt to integrate Bitcoin (BTC) into bonus programs. In this field of tokenizing loyalty points, which has hardly been developed at all so far, a lot is likely to happen in the near future.


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