On November 14th, Reddit administrators announced their intention to relinquish full control over the Moons (MOON) contract by the end of November and burn 34% of the token’s total supply. This decision transforms the native token of the r/CryptoCurrency community into a “fully decentralized” asset.
Following the burn, the total supply of MOON will decrease from approximately 126 million to 83 million, and MOON will still be tradable on centralized exchanges.
Notably, in their post, Reddit’s development and operations team also revealed that they will collaborate with the community to develop plans for Moons in the future. This includes how to distribute the remaining MOON tokens within the community, possibly based on community contributions, tipping, and user engagement in contests. Additionally, they are researching technology improvements to enhance token utility and improve the user experience.
With this token distribution approach, the community began to suspect that Reddit is preparing to “revive” the Community Points program after temporarily suspending it one month ago.
Immediately after this news, the price of MOON surged by 580%, rising from $0.05 to $0.34 USD. At the time of writing, MOON is trading around $0.24 USD.
Moons (MOON), the native token of the r/CryptoCurrency community, is a reward token for the subreddit connected to Reddit’s Community Points program. Community Points were first introduced in 2020 to reward members based on their contributions in Reddit’s smaller communities, such as receiving many upvotes for comments or posts.
Earned points are ERC-20 tokens and are stored in Reddit’s cryptocurrency wallet, Reddit Vault. Users can then use Community Points to purchase emojis or badges. Initially, Community Points operated on the Ethereum network but later migrated to the Arbitrum Nova layer-2 solution in August 2022 to reduce transaction fees and improve scalability.