Reddit has announced that it will be shutting down its blockchain-based rewards service, Community Points, due to scalability concerns. The service, which rewarded users with points for positive engagement in certain subreddits, will be discontinued on November 8. The points were Ethereum-based ERC-20 tokens stored in Reddit’s in-house crypto wallet service, the “Reddit Vault.” The decision has caused disappointment and anger among Reddit users and crypto enthusiasts, as the value of the tokens plummeted following the announcement. Transfer functionality will still be available for users, but Reddit will no longer have control over the contract.
