Reddit tokens coming ?

Wow !

Reddit Launches some loot tokens for reputation and rewards on ethereum.

2 new types of loot tokens have been created. It’s a token on the Ethereum blockchain that is earnable within a community rather than purchased. They signaled that their plan to pivot the company’s monetization strategy more towards crypto. Interesting tidbit. And This overall initiative is referred to as “Community Points” and builds on the early experiments from /r/Ethtrader donuts.

What are the two loot tokens called?

Reddit launched “Moons” ($MOONS)

for /r/Cryptocurrency and

“Bricks” ($BRICKS) for /r/ForniteBR

I wonder how they plan on getting away with “bricks” considering LEGO uses bricks and such and doesn’t really like when people use their lingo for business revenue.

Where ?

The tokens are available on specific subreddits on the new Reddit theme and in the app.

Users will be able to access the tokens in their Reddit “vault” an in-app ERC20 wallet available on both iOS and Android.

Basically a crypto wallet in a sense.

How ?

Reddit will distribute these tokens initially based on Reddit Karma to represent compensation for the value that users have contributed to the community overtime.

Reddit itself will keep a portion of the tokens in each subreddit, and award a small portion to the community moderators for managing the subreddit.

On the launch day there will be an initial distribution of 50M tokens covering previous activity in the subreddit, and then the remaining tokens will be distributed month over month diminishing with each monthly distribution until it hits its cap of 250M tokens for each individual subreddit.

Reddit has indicated that the community will also have some ability to govern the model of distribution with in each independent subreddit.

What can you do with Reddit Loot ?

The Community Points Program issues a type of loot token on the Ethereum blockchain. So you can earn loot in the community as well as redeem it within the same community.

One major usage is using these tokens to tip other users. You can also buy badges and awards, take part in weighted polls, or buy a special membership to each particular subreddit (that gives you a colored user name, specialty loyalty badges, and the ability to embed gif replies in your comments.)

Economics of the loot tokens

The economic model has three key points:

1) Number of tokens issued diminishes over time, and can only be earned from human effort.

2) All future human effort earns less tokens than all prior human effort. There is a hard cap of 250M tokens in a subreddit. There will never be more than 250M $MOON tokens.

3) Every time $MOON tokens are used to buy badges, memberships or for any other action on Reddit, they are burned. (destroyed !).

The price of an asset increases as supply lowers and demand increases

So the more active a community is and the more value it creates for its users, the less tokens will exist over time.

Tokens will have a lower supply, but, a greater demand.

Any other usages ?

Moons and Bricks are both ERC20 tokens on the Ethereum blockchain, you can do whatever you want with them.

In the Reddit app your wallet is a full Ethereum wallet that has a private key and recovery phrase. You are able to use that wallet anywhere you would normally use an Ethereum wallet by exporting it.

This means that once you claim your tokens you own them and no one else has access to them. Not even Reddit.

While these tokens started their journey with Reddit, they ultimately represent value created within a specific interest group, and could start to proliferate across other mediums.

If you want to list your tokens on exchanges to sell, you can do that too.

While Reddit is very likely to continue exploring new features to redeem these tokens for, the tokens are fully decentralized and can be used by anyone in anyway.

Interesting stuff and use case.