Recently, two subreddits with 2.4 million members between them announced the launch of Ethereum-based tokens. The r/Cryptocurrency and r/FortNiteBR subreddits both launched crypto tokens on May 13. They have labeled their tokens MOON and BRICK respectively. The Ethereum-based cryptocurrencies will be used as community points for participants in the respective subreddits. They are the first in a new campaign by Reddit to offer crypto tokens as community points in its numerous subreddits.
How the Token System Will Work
The tokens will be stored in a crypto wallet called Reddit Vault that is built into the iOS and Android apps of Reddit. Like other Ethereum-based tokens, users will be able to move their tokens out of the vault into any ERC-20 compatible wallet. However, no exchange has announced support for these new coins yet. The tokens will be used in specific subreddits and will act as rewards while also providing holders with “Special Membership” as well as voting rights.
According to an announcement on the Fortnite subreddit, the BRICKS tokens can be traded and used within the subreddit for various purposed. For now, the tokens will be used to display reputation and unlock various exclusive features such as GIFs and badges in the comments. Additionally, they will offer holders “Special Membership” status while increasing their weight when voting on polls. The announcement in the Cryptocurrency subreddit offers similar promises.
How to Earn the Tokens
Members who wish to earn the tokens can earn them via contributions, which include posts, comments, and much more, which is based on their karma. According to the post, the distribution of the tokens will be left up to the community. However, how the voting process using the tokens will take place was not explained.
Both the MOON and BRICK tokens have similar properties. However, there are some subtle differences. One of the main differences is in the inflation schedule; that of MOON is more fleshed out compared to that of BRICK. For instance, in the initial rollout, 5 million MOON tokens will be released into circulation in May. Over time, this figure will drop by 2.5% each month until all the 250 million tokes are released. On the Fortnite subreddit, the inflation schedule for BRICK tokens has not been detailed.
Both subreddits plan to release their tokens in the next few days on the Ethereum Ronkbey testnet. After the testnet period, which will last all summer, they will be moved to the mainnet if they pass the testnet.