Reddit, one of the most well-established social networks among social networks, has launched the Community Points feature that it has published in the past years. This feature allowed users to tip each other, reward community members, and give the community a say in decision making just like a DAO.
However, the company wanted to increase scaling within these tokens on the Ethereum blockchain. In this context , Reddit opened a project competition on scaling . With the Layer-2 solution Arbitrum winning the competition in July of 2021 , the company started working on publishing the new structure on the Ethereum mainnet .
More than a year after the announcement of the Arbitrum collaboration, the company announced that it has launched Arbitrum-powered scaling. Also, Reddit has partnered with FTX Pay for Community Points transactions on ETH. Thus, users will be able to pay ETH transaction fees using stable currencies.
Amy Wu, president of FTX Ventures, said:
“Users need Eth for gas fees that enable them to transact with Community Points on the chain, and FTX Pay enables them to do so”
Recently, it is possible to say that the interest of social networks such as Meta and Twitter in NFT support has reached a much more advanced stage in Reddit. In the long run, it could be that other Web3 startups look to Community Points as they build their own communities on Reddit.