“Reddit has over 400M (monthly) active users which makes this one of the biggest consumer initiatives in Web3. This could be beneficial for Reddit, but also for FTX.
Reddit has not confirmed when it will expand the community points program beyond the two subreddits it is testing the feature in, but the FTX partnership shows that the company is serious about onboarding non-crypto native users. This way users can avoid confusion, which will ease adoption of the community points feature. For the average Reddit user, this process may be confusing, but through the FTX partnership, non-crypto-savvy customers can buy the cryptocurrency they need to use their “community points” directly through the Reddit app with dollars. Using the community points means making a transaction on the blockchain, which requires users to spend crypto, in this case Ethereum, to pay fees to the network to validate the transactions. The partnership with FTX signals that Reddit wants to make community points more widely available to non-crypto natives. The key is that the community points exist on the blockchain and are fully owned by the users, leaving the door open for them to be used in other yet-to-be-developed applications, which would give the points more utility. They can be used within subreddits to give users with more points increased influence in polls about how the group should be run or to buy special memberships and rewards, among other things.
The points determine a user’s reputation and appear next to the username. In 2020, the company launched “community points” which gives users in two subreddits the ability to earn blockchain rewards for submitting “quality posts and comments.” The development may seem incremental, but it’s part of a broader push to combine Reddit and blockchain technology like crypto and NFTs, which the company has increasingly adopted. The new partnership involves a product called FTX Pay, which allows merchants to accept both crypto and fiat-and, in Reddit’s case, means users won’t need to leave the app to buy Ethereum.
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