More details appear to have leaked regarding Reddit’s rumored Ethereum (ETH)-based “Community Points” system. A video posted to the platform purports to show a draft of FAQ copy explaining how the system will work.
If authentic, the video appears to confirm that Reddit is preparing to launch a reputational currency on Ethereum.
Video claims to confirm Reddit’s ERC-20 based ‘Points’ system
Community Points are described as “a new tool that represents ownership of a subreddit.”
Users can earn the points by “making contributions to the subreddit, such as posting and commenting” — meaning that users will be rewarded based on the activity generated by their engagement with the platform.
The copy asserts that the Community Points will comprise ERC-20 tokens hosted on the Ethereum blockchain:
“Community Points are fully controlled by the people who own them. They live on the Ethereum blockchain, which uses the same technology to guarantee property rights and control. Even Reddit cannot take them away.”
‘Community Points’ system describes utility tokens
Community Points will be available in subreddits that opt in to the system, with each subreddit able to give the points custom names.
The documentation asserts that Reddit’s points will have a variety of utilities including purchasing premium memberships and voting in polls. Reddit also encourages subreddits to create their own use-cases for the tokens:
“As a unit of ownership, Points can be used in different ways by different communities. Over time, communities will find ways to use points that are unique to them and fit their culture.”
The documents also include a blank page that is titled “Tipping and Transfers” — suggesting the system may be intended to facilitate micropayments.
Reddit’s tokens will feature burn mechanism
Points that are used to purchase special memberships will be “burned,” with the copy emphasizing that the burn mechanism will “mak[e] everyone else’s share of…