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Popular social media platform Reddit has its disclosed decision to wind down its blockchain-based rewards program known as Community Points
It said that scalability issues were behind the decision
The move comes even after Reddit abandoned Ethereum for Arbitrum to address the scalability concerns
Popular social media platform Reddit has disclosed plans to shut down its blockchain-based rewards system dubbed Community Points saying it was unable to scale it “across the platform.” The move comes despite Reddit moving the program from Ethereum to Arbitrum to address the scalability concerns. Although the platform cited scalability concerns, the decision comes at a time when most web3-focused entities are taking drastic measures such as layoffs and shutdowns to survive the tough times.
No Points in the Vault
In a Reddit post, the platform said that after November 8, its users will no longer earn or access earned points in their Reddit Vault, adding that the program wasn’t a total failure since it had “some future opportunities.”
Explaining the decision, the social platform said that it has similar programs in the pipeline that are scalable and can “accomplish what the Community Points program was trying to accomplish while being easier to adopt and understand.”
The decision wasn’t well received by the community with some calling it a rug pull. Others also aimed at other blockchain-based products from Reddit such as NFTs.
Why Should We Buy Reddit NFTs?
One Redditor, for example, wrote:
“I’d like to know why any of us should buy Reddit NFTs or anything related to web3 from here on out. How will we know our purchases will last or be valid?”
The few who seemed to understand the situation noted that Reddit’s move was a result of the ongoing bear market. Others insinuated that the company wants “to shed any extra regulatory burden” as it prepares for an initial public offering (IPO).
Bear market things…
— James Bull (@MariusCrypt0) October 17, 2023
Although Reddit’s move didn’t affect its NFT offering, the decision is likely to derail its web3 push.
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