Reddit has decided to end its Community Points initiative, which rewarded high-quality posters with Ethereum-based tokens. The website cited a lack of scalability and high costs as the reasons for discontinuing the program. The decision will only affect a few subreddits, as the original plan to put all Reddit users on the blockchain was deemed too expensive. Reddit had previously attempted to cut costs by moving the project to Arbitrum Nova, but even Layer-2 solutions proved to be too costly. Uncertain regulation surrounding cryptocurrencies also contributed to the decision, as the regulatory environment added to the resourcing needed for the program. The plunge in cryptocurrency tokens affiliated with Reddit, such as MOON and DONUT, further reflects the impact of this decision.

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Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	1
People	Tim Rathschmidt
Companies	CoinGecko, Ethereum, Reddit, Binance, SEC
Currencies	Ethereum
Securities	None