Reddit has determined to close down its ‘Group Factors’ initiative that it launched for its crypto-friendly customers again in 2020. Citing stability considerations, the characteristic let Reddit customers earn Ethereum rewards based mostly on the up votes they acquired on contributing to a subreddit with insightful content material or by volunteering to average the neighborhood. In an official announcement launched on October 17, the social networking platform knowledgeable its customers that its Group Factors programme might be coming to an finish on November 8.
“A part of why we’re winding down Group Factors is as a result of we’re in a position to scale a number of merchandise that accomplish what the Group Factors program was attempting to perform, whereas being simpler to undertake and perceive. Although we noticed some future alternatives for Group Factors, there was no path to scale it broadly throughout the platform,” stated Reddit’s official put up.
The Ethereum-based ERC-20 tokens, that had been rewarded to eligible Redditors, had been extracted from the ‘Reddit Vault’, which is the platform’s personal crypto pockets service.
Reddit’s crypto tokens MOON and BRICK have seen a pointy value decline because the Information of neighborhood factors being withdrawn broke on its weblog. In the meantime, a debate has began on X regarding Reddit’s choice amongst neighborhood members.
Whereas some individuals on X are claiming that Reddit could have ‘rugged’ the traders of MOON and BRICK with this transfer, others are defending the platform saying that it is smart for it to close down options that aren’t performing as anticipated.
What the fuck, Reddit (sure truly the corporate Reddit) simply rugged their customers by “discontinuing” their native cryptocurrency.
-90% similar to that. pic.twitter.com/lzuqs1KNsX
— Byzantine Common (@ByzGeneral) October 17, 2023
So, basically, if an organization begins a characteristic they need to proceed until eternity?
— Pratik (@Pratik_in_Web3) October 17, 2023
Reddit, as of now, has not addressed these claims.
“We nonetheless love the concept impressed Group Factors. Particularly, discovering higher methods to enhance neighborhood governance and empower communities and contributions. Although the moderators and communities that supported Group Factors have been unimaginable companions – because it’s advanced, the product is now not set as much as scale,” its announcement famous.