With The FTX Partnership, Reddit Continues Web3 Efforts.

FTX made the announcement on Tuesday that it will be rolling out the tokenized Community Points program in conjunction with its global relationship with the social media network Reddit. By utilizing the FTX Pay option, FTX is functioning in the capacity of a third-party service provider.

FTX mentioned this in its statement,

“We are pleased to assist bring Reddit’s vision to reality and help communities break free of walled gardens and take responsibility of their existence online. This is a big deal for us.” We look forward to having you explore Community Points!

The initiative, which was launched in 2020 as an innovative approach to give Redditors more control, has at long last made its beta version available to the public. After the New Feature Token Avatar has been implemented, the Community Points feature will enable users to “own a piece of their community” by adding a unique token to their subreddit. Additionally, it enables users to earn incentives, produce higher-quality content, and unlock additional features, all of which can be done more easily.

The regulated cryptocurrency payment service known as FTX Pay is operated by FTX. Because FTX Pay is a partner of Reddit, its capability has been incorporated into the Reddit Vault wallet app so that users can top off their accounts if they have insufficient funds. Even though Community Points cannot be purchased, they can be given as gifts; and FTX Pay makes it possible to buy additional ETH in an easy way in order to pay the “gas fees” required by the Ethereum network in order to collect airdrops. If the app determines that the user does not have adequate funds, it will instantly prompt them to reroute to FTX so that they can purchase ETH with a credit or debit card after they have authenticated themselves.

The project is being implemented in stages, and the r/CryptoCurrency and r/FortnightBR subreddits will be the first ones to try it out. Because it is currently very much an opt-in function, other subreddit moderators who are interested in participating in the project can sign up on a waitlist to do so.

Once utilized, these Community Points, which are tokens based on the ERC-20 standard and stored on the Arbitrum Nova blockchain, are destroyed and removed from circulation. Points, in contrast to the vast majority of other tokens, cannot be purchased; rather, they must be earned through contributions such as the creation of content and the moderation of subreddits.

Advertisement

“The Internet wouldn’t be what it is today without its communities. On the other hand, in the Internet of today, they do not have control over their own destinies. Instead, they are under the authority of the huge platforms that hold the sway over everything that happens online. It is time for a different approach. The introduction of Community Points marks the beginning of an alternative path forward for online communities. Because they are stored on the blockchain, these tokens can rightfully be said to belong to the community as a whole. Your community will eventually reap the benefits of an even higher degree of authority and independence — both on and off of Reddit.

In addition, individual communities on Reddit have the ability to alter the Community Points tool in order to generate tokens with unique names, symbols, distribution rules, and purposes. Additionally, they can be utilized by subreddits for the sake of community governance and moderation, in addition to the unlocking of premium services.