In the last 24 hours, Reddit cryptocurrency MOON, the community token for the r/cryptocurrency subreddit, has increased by 62% as a result of the social media network changing its terms of service to permit trading of the points.
Coingecko records show that the value of the digital currency increased by about 200% over the previous week, going from about $0.09 to $0.278 at the time of writing.
The layer2 network, Arbitrum (ARB) Nova, is the foundation for the Ethereum (ETH)-based coin MOON. The virtual currency may be used to tip community members for their efforts and to buy premium features on the subreddit.
Reddit cryptocurrency MOON: What is it?
To compensate its millions of content creators, the social media juggernaut will introduce a new feature called Reddit Community Points (RCPs) in 2020.
If you currently use Reddit, you probably already know that the site is made up of tens of thousands of unique forums called subreddits that let users engage in controlled message board discussions about various topics.
RCP tokens are a more recent innovation, but they are comparable to other awards the firm has previously provided that let users get paid for their reputation and efforts.
For instance, in response to remarks or discussion, you could have accumulated “karma credits“. The distinction between RCPs and karma points is that RCPs are crypto assets with a market-determined monetary value.
Therefore, if a subreddit you follow supports RCPs, it implies that by participating in its community and content, you may start to earn bitcoin. Two Reddit subreddits have so far introduced their cryptocurrencies.
The r/FortNiteBR subreddit introduced BRICK, which is described here, while the r/Cryptocurrency subreddit announced MOON, which is described here.
Reddit cryptocurrency MOON: How it works?
Reddit cryptocurrency MOON is legitimate cryptocurrencies since RCP tokens are Ethereum-based.
The r/Cryptocurrency subreddit, which is devoted to news, conversations, and analysis of cryptocurrencies, has designated MOON as its official cryptocurrency.
Therefore, MOONs are:
- Compatible with all other Ethereum assets and apps.
- Governed and owned by users
- Pseudonymous (nothing links an RCP token to a Reddit user’s real name).
All postings in the subreddit must be about cryptocurrencies or somehow connected to the culture, per the rules of r/Cryptocurrency.
The subreddit is backed by several developers, and users interact by giving trading advice, hilarious material, and news about cryptocurrencies in general.
Reddit cryptocurrency MOON: Earning
Based on the material they post on the r/Cryptocurrency subreddit, users can earn MOON tokens. This might involve making original postings or leaving comments on other people’s writing.
If you are a frequent user, you can get advice from other Redditors or get MOONs from the protocol itself according to how many karma points you accrue.
Each Redditor will receive a certain number of MOON tokens based on how much karma they have accrued in the subreddit so far. Reddit will first distribute 50 million MOON tokens to the community.
The same procedure will be used each month to distribute a certain amount of tokens by the software’s guidelines. Additionally, Reddit set aside a specific quantity of MOON for distribution to both Reddit itself and the community moderators who oversee the topic.
Reddit cryptocurrency MOON: Vault
Redditors may examine their MOON balance in The Vault and use it to purchase other goods. Only the mobile applications for Reddit provide access to vaults.
Vaults provide a public address, which is where the MOONs are stored, and a private key, which enables users to access and spend them, just like any other cryptocurrency wallet.
It should be noted that Reddit has access to the RCP token ledger balances, which enables them to verify a Redditor’s balance and reward them using their public address.
The MOON increased following the phasing-out statement
At the time of writing, MOON is trading about $0.1649 on CoinMarketCap, having seen a rise of more than 75% on Monday’s daily charts.
MOONs are a reward given to participants in the r/CryptoCurrency subreddit. The token may then be ‘tipped’ to other users and used to buy premium features on the subreddit. However, there has recently been unhappiness in the neighborhood.
Reddit announced this week that it has decided to phase out Reddit currencies. Although they are likewise virtual money, Reddit coins can only be used on Reddit Premium. This choice was made immediately after a “Reddit blackout” in which several subreddits went dark in opposition to suggested API modifications.
According to reports, the modifications affected a number of apps as the platform worked to maintain its profitability and thwart illicit third-party usage of its software.
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Featured image credit: Unsplash.
