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Reddit, the American version of the PTT forum, confirms the rumor of launching its own coin! Ethereum adoption rate expected to grow significantly.

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Reddit, the American version of the PTT forum, confirms the rumor of launching its own coin! Ethereum adoption rate expected to grow significantly.

The well-known international forum Reddit released its latest graphic and textual introduction yesterday, revealing that its latest token issuance plan is undergoing beta testing, inviting users to participate in testing to help identify potential vulnerabilities. In addition, as the token is based on the Ethereum ERC20 token protocol, experts speculate that the project will indirectly bring significant growth to the adoption rate of Ethereum.

Reddit Officially Launches Community Points Program

According to previous reports, a controversial video surfaced in April this year on a cryptocurrency discussion board, showing Reddit integrating a blockchain-based cryptocurrency wallet into its official Android app.

UPDATE: Reddit’s blockchain-based points system confirmed to be on Ethereum, and lot more! from CryptoCurrency

The video showcased a new "Wallet" option within Reddit's app. Upon clicking, users could see what appeared to be an Ethereum address (starting with 0x) and an option for a mnemonic phrase. Although the video was released by an anonymous user at the time, and no official explanation was provided, speculations arose that Reddit might issue its own cryptocurrency. However, no official confirmation was given.

It wasn't until yesterday that Reddit officially released a series of graphics and texts, confirming its cryptocurrency issuance plan. The project, named "Community Points," aims to create a more decentralized and user-centric internet forum through a token model. The project is currently in beta testing and will distribute two types of tokens to the members of r/Cryptocurrency (1 million members) and r/FortniteBR (1.3 million members). A Reddit spokesperson stated in an interview:

"We continue to experiment to explore features that are attractive to our users and communities. We will collaborate with two communities to test this feature and gather user feedback."

In the newly released webpage by Reddit, it includes a guide on how to create a "Vault." The "Vault" is a new platform designed by Reddit to manage tokens. According to Reddit, users can use the Vault to manage, withdraw, or spend tokens from various subreddits.

Tokens Based on ERC20

According to Reddit, the tokens' utility will include voting, rewarding content creators, and transferring funds. Additionally, the platform will display each user's token balance publicly as a reputation measure within the ecosystem. The two test tokens issued by Reddit, named "Moons" and "Bricks," are both ERC-20 tokens issued on the Ethereum blockchain. Therefore, when users create a "Vault," they are essentially creating a new Ethereum wallet to manage assets on the Ethereum blockchain. The Vault page states:

"Community Points are currently in beta (through summer 2020). During this time, they will be on the Rinkeby testnet (one of Ethereum's testnets), and balances, transactions, and memberships may be reset. After the feature exits beta, Community Points will migrate to the Ethereum mainnet. Point balances will be settled (reclaimed)."

According to an analysis by Adam Cochran, a partner at Ethereum venture fund MetaCartel Ventures, this new token system could bring at least 20 million users to Ethereum, significantly boosting its adoption rate. Additionally, Ryan Sean Adams, author at "Bankless," mentioned on Twitter in April that the user growth it brings could be 100 times that of the current Ethereum DeFi users.

Further Reading

  • Reddit to Introduce Blockchain-Based Points System, Similar to U.S. Reddit
  • ICO Revival? Ethereum Co-Founder: Large-Scale Token Sales Will Resume

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