Reddit has a reputation for being a place where people can find information quickly and easily. That means there’s a lot of people that use Reddit as a source for news and information. However, Reddit has now taken cryptocurrency into consideration, and you should know more about Reddit cryptocurrency. Let’s look at Reddit Crypto to find out more.
What is Reddit Karma Cryptocurrency?
On Reddit, karma is earned when other users upvote posts and comments. Karma points are not a currency. They are a form of social media reward points. Reddit users can vote on comments or posts by clicking the upvote and downvote buttons next to each. Positive karma (upvote) increases the number of points a post has, while negative karma (downvote) decreases it. As per the Reddit engineer, Rahul Kothari, the company is planning to convert users’ karma points into Ethereum-based (ERC-20) tokens.
Will Reddit Have Cryptocurrency?
Reddit will not have a native cryptocurrency. As you read above, the company is planning to incentivize its users with Ethereum tokens. The company has already taken steps towards improving user interaction through various cryptocurrency initiatives. According to a newly hired Reddit engineer, Reddit may soon convert users’ karma points into ERC-20 tokens and onboard 500 million new crypto users in the process.
Previously, the social media platform had launched its own layer-two rollup using Arbitrum technology for its rewards points, named Community Points. Partnering with Offchain Labs’ Arbitrum network will allow for the creation of a separate blockchain instance. Reddit wants to use this for storing users’ tokenized community points.
Community Points will be stored as standard ERC-20 tokens on the Ethereum blockchain to guarantee ownership. Consequently, Reddit communities will also be able to fork blockchains through community-based decision-making.
The "Reddit Cryptocurrency" move is an attempt to improve user engagement and increase the number of crypto users on its platform. In addition, Reddit aims to decentralize the Internet. This could be of benefit to individuals and communities that thrive on the platform.
“When we all pull this off, we would onboard 500M web2 users into web3 and then there is no going back. Let me say that again – 500 million new crypto users.”
Rahul Kothari, Engineer at Reddit