On Wednesday, Reddit announced that its blockchain-based rewards program, Community Points, which had issued crypto tokens like MOON and BRICK to users, would be suspended on November 8th – giving cited reasons of scalability limitations and an unfavorable regulatory environment. Prices of related tokens nosedived upon the announcement, causing Kraken co-founder Jesse Powell to disparage Reddit’s decision, proposing that the company should offer redemptions such as the chance to use points to purchase avatars and badges in order to ‘soften the blow’. According to Powell, by discontinuing the program, Reddit was destroying massive user investments without compensating them.
Although the abrupt suspension comes after three years of the program’s successful operation, Powell continues to advocate for an an alternative approach to finance the successor program. He believes that while the discontinuation pulls a rug from unimaginably prepared widespread user bases,Reddit could have gradually managed the transition rather than swiftly quitting without offering an interim solution.Undoubtedly, the sudden token selloffs illuminates the vulnerabilities of dependent users that rely on companies to perpetuate scene-engaging incentives. However, the dispute sparked by334Powell’s nudging retention method forces debates wedged between practical and fairvesolutions in retraction of monetary stakes within money-endowed old plank programs of the future.
