Reddit has determined to close down its ‘Group Factors’ initiative that it launched for its crypto-friendly customers again in 2020. Citing stability issues, the function let Reddit customers earn Ethereum rewards based mostly on the up votes they received on contributing to a subreddit with insightful content material or by volunteering to average the group. In an official announcement launched on October 17, the social networking platform knowledgeable its customers that its Group Factors programme will likely be coming to an finish on November 8.
“A part of why we’re winding down Community Points is as a result of we’re capable of scale a number of merchandise that accomplish what the Group Factors program was attempting to perform, whereas being simpler to undertake and perceive. Although we noticed some future alternatives for Group Factors, there was no path to scale it broadly throughout the platform,” mentioned Reddit’s official post.
The Ethereum-based ERC-20 tokens, that had been rewarded to eligible Redditors, had been extracted from the ‘Reddit Vault’, which is the platform’s personal crypto wallet service.
Reddit’s crypto tokens MOON and BRICK have seen a pointy worth decline for the reason that information of group factors being withdrawn broke on its weblog. In the meantime, a debate has began on X regarding Reddit’s choice amongst group members.
Whereas some folks on X are claiming that Reddit might have ‘rugged’ the buyers of MOON and BRICK with this transfer, others are defending the platform saying that it is sensible for it to close down options that aren’t performing as anticipated.
What the fuck, Reddit (sure truly the corporate Reddit) simply rugged their customers by “discontinuing” their native cryptocurrency.
-90% identical to that. pic.twitter.com/lzuqs1KNsX
— Byzantine Common (@ByzGeneral) October 17, 2023
So, usually, if an organization begins a function they need to proceed until eternity?
— Pratik (@Pratik_in_Web3) October 17, 2023
Reddit, as of now, has not addressed these claims.
“We nonetheless love the concept that impressed Group Factors. Particularly, discovering higher methods to enhance group governance and empower communities and contributions. Although the moderators and communities that supported Group Factors have been unimaginable companions – because it’s developed, the product is not set as much as scale,” its announcement famous.
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