Simple reading of Reddit's credits: how is it different from the token issue in the general sense of the crypto community?

Editor's Note: The original title was "Simple Reading Reddit Credits"

According to statistics, the Reddit community has 430 million monthly active users in 2019, surpassing Twitter. In 2019, users posted a total of 199 million posts, 1.7 billion comments and 32 billion likes on Reddit. Reddit once received a $ 300 million investment from Tencent in 2019. After that financing, Reddit's valuation was as high as $ 3 billion.

A large number of crypto users are also active in the Reddit community. Reddit's recent plan to launch community credits based on Ethereum soon attracted the attention of the crypto community.

So, what is Reddit's community credit? What is different from the token issuance in the general sense of the crypto community? According to the screenshot text of the Reddit Android App, we can roughly sort out its overview.

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How to get Reddit community credits?

Reddit community credits represent the ownership of its sub-sectors. Community credits are used in certain Reddit sub-sectors. How are community points earned? Mainly through contributions to the community, such as posting and comments.

Specifically, tokens are allocated according to the monthly contribution value of users to sub-sectors. Every 4 weeks, Reddit will publish a list of contribution values ​​earned by all users in the sub-section during this period. The community has a week to review the list, and if necessary, can propose amendments. Users can submit new proposals and the community will vote. If the vote meets the quorum requirement and is passed, the new contribution value list will become the official contribution value list for this period.

Once the contribution value is determined, Reddit publishes the final list and allocates tokens to the user's wallet. If the user has not registered a wallet, once the user registers the wallet, Reddit will immediately sign the total amount of its contribution value. However, there is a validity period. Within 6 months after the final list is published, users must claim their points, otherwise they will expire.

In terms of the overall ratio, all users can get 50% of the total points by contributing, and the remaining 50% of the points will be distributed to other community contributors. Among them, 10% is reserved for sub-sector managers; 20% is reserved for Reddit officials; 20% is reserved for the wider Reddit community.

Reddit token issuance adopts a mode of decay according to time, and gradually decreases with time, and gradually approaches the upper limit. 50 million points will be issued for the first time, based on the contribution to date in the sub-sector. In the following year, 50 million pieces were issued and gradually decreased, with a total of 250 million pieces. In addition, 50% of the destroyed tokens will be reintroduced into the next month's distribution.

What is the use of Reddit points?

The current uses of Reddit Community Credits are:

* Purchase membership

Why do users want to purchase membership on Reddit? Special members can unlock exclusive features in some communities. This is also a common practice in the Internet community. Some exclusive features that members can have, such as:

1) Badge

You can display icons or images next to the user names of posts and comments.

2) Animated emoji

Custom animations appear in the comments.

3) GIF picture

The comments show pictures from Giphy's GIF catalog.

Credits are used to purchase special memberships, and credits used to purchase special memberships will not be paid to Reddit. This part of the point currency will be destroyed, which is the same as the current deflation mechanism commonly used in the cryptocurrency community. With the use of loyalty coins, the total amount of loyalty coins decreases, and the share of loyalty coins for everyone rises, which is equivalent to the holders of loyalty coins capturing the corresponding value.

What if the user does not have points, such as a new user who just came in and wants to become a member? Users can purchase memberships in cash. If you use cash to purchase your membership, the fee is collected by Reddit. After Reddit receives the cash, it will destroy the corresponding value of the points. In other words, it is equivalent to buying Reddit official points. Of course, this part of the points is not generated by additional issuance. Reddit will get 20% of the points. After receiving the fee, Reddit needs to destroy the corresponding points.

* Weighted voting on survey

Credits can be used for weighted voting. Ordinary community voting is generally one person and one vote, and with the scoring currency, the weighted voting mode can be enabled, which can allow the core users of the community to express more opinions.

The weights are measured based on the points coins of the voting users, and these points must be earned from the community, not through other means (such as purchase).

* Prestige display (display user token balance next to user name)

Credits are also an important method of measuring user community contributions. The credit balance will be displayed next to the user name of the sub-section posts and comments. The reputation of the user can be more displayed.

From the definition of Reddit, its credit is a tool of the community, and different sub-sectors can develop their own uses. The above users are just the current basic uses. In the future, more uses will be evolved, such as using reward points for rewards and using reward points for intra-community transactions.

Reddit points are based on ERC20 tokens issued by Ethereum

Reddit points are different from contribution points or ordinary website points. The points or contribution value of the Reddit website is recorded on the Reddit server, is centralized, is controlled by Reddit, and cannot be used for trading or other purposes.

However, Reddit points are another concept. It adds elements of blockchain. Credits are tokens that represent community ownership. They are not stored on Reddit's servers. Credits can be freely traded, and they can be used for a variety of purposes according to the needs of the community. Credits are not officially controlled by Reddit. Even if Reddit stops running, even the community no longer runs on Reddit (such as the community's own website or APP). Credits also exist.

This means that the points are controlled by users. The reason why it can be controlled is because the points are based on the ERC20 token issued by the Ethereum blockchain, and the user masters the private key and then the points.

Therefore, the Reddit App will also have a built-in wallet function. Users manage and use credits through wallets. The wallet will display the number of tokens in each sub-sector. After creating the wallet, there will be a public key and a private key. For encrypted users, these are very common. But for ordinary Reddit users, it may take some time to digest. The official only knows the user's public key, which can be used to check the user's balance and allocate new tokens. The user has full control of the points. But when there is yang, there is yin. This also means that once the user loses the private key and device, the credits may also be lost. The user is responsible for the credits. In order to improve the user experience, Reddit provides two ways to back up the wallet:

* Safely encrypt the user's private key and store it on the Reddit server. This backup is encrypted with a new "wallet password", which is separate from the user login password. Encryption can prevent others, including Reddit, from accessing the private key from the backup. This method is suitable for ordinary users who have lower security requirements and higher convenience requirements.

* Save the mnemonic of the wallet. The mnemonic word is 12 words and can be used to restore the e-wallet. This is a common method for crypto wallets.

V God's view on Reddit points

V God's suggestion for Reddit points is: You can refer to Virgil's opinion. Reddit should allow the sub-section to set any smart contract address as their host. This allows a variety of coordinated experiments similar to DAO.

Conclusion

Reddit points are based on the erc20 token issued by Ethereum. Its monthly active users exceed 400 million. If 10% of them can be converted into Ethereum users, this will also bring a large number of natural users to the Ethereum ecosystem. In addition, points coins will also play a certain role in the enlightenment of cryptocurrencies, allowing many users outside the crypto community to have access to and understand cryptocurrencies. With the increase in the use of points coins, points coins may generate a lot of activities on Ethereum, which is conducive to the development of Ethereum ecology. If the development goes smoothly, it may be possible to become another important usage scenario on Ethereum after the stablecoin.

Appendix: some screenshots

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