The partnership with FTX will enhance the user experience on the Community Points project for over 400 million monthly active users on the Reddit platform.
FTX Pay Joins Reddit’s Community Points Project
On Tuesday, FTX announced its global partnership with social media network Reddit to roll out the tokenized Community Points program. FTX is acting as a third-party service provider through its FTX Pay feature.
In its statement, FTX noted,
“We are excited to help bring Reddit’s vision to life and help communities break free of walled gardens and take ownership of their existence online. We welcome you to check out Community Points!”
The project, announced in 2020 as a novel way to empower Redditors, has finally gone live with its beta version. After the NFT Avatar feature, the Community Points will allow users to “own a piece of their community” by adding a custom token to their subreddit. It also opens up opportunities for earning rewards, creating more quality content, and unlocking special features.
FTX Pay To Top Up Funds On Reddit Vault
FTX Pay is a regulated crypto payments service managed by FTX. As a Reddit partner, the FTX Pay feature is integrated into the Reddit Vault wallet app for users to top up their insufficient funds. Even though Community Points cannot be bought, they can be gifted; and FTX Pay enables a simple method of buying additional ETH to pay the Ethereum network “gas fees” to collect airdrops. Upon detecting insufficient funds, the app automatically prompts the user to redirect to FTX, where they can buy ETH via credit or debit card after completing authentication.
The project is being rolled out step-by-step, with the r/CryptoCurrency and r/FortnightBR subreddits being the first to experience it. Since it is still very much an opt-in feature, other subreddit moderators can sign up on a waitlist to join the project,
More About Community Points
These Community Points are ERC-20 tokens on the Arbitrum Nova blockchain, which are burned and removed from circulation once used. Unlike most other tokens, Points cannot be bought; they have to be earned through contributions like creating content and moderating subreddits.
According to the official sub on Reddit,
“Communities are the lifeblood of the Internet. But on today’s Internet, they are not in charge of their own destiny. Instead, they are controlled by the large platforms that hold all the power online. It is time for a change. Community Points are the first step towards a different future for online communities. These tokens live on the blockchain, which means they are truly owned by the community. Over time, your community will benefit from even greater control and independence — on and off of Reddit.”
Furthermore, different Reddit communities can customize the Community Points tool to create tokens with new names, symbols, distribution rules, and purposes. Subreddits can also use them for community governance and moderation purposes, as well as for unlocking premium features.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.