Social media platform Reddit plans to drag the plug on its blockchain-based reward service Group Factors.
“The regulatory setting has added to scalability limitations. Although the moderators and communities that supported Group Factors have been unbelievable companions, because it’s advanced, the product is now not set as much as scale,” Reddit wrote in a message reviewed by The Block.
“Transferring away from Factors permits us to put money into merchandise that present worth to extra Redditors,” it added. “We’ve additionally launched, or are actively investing in, a number of merchandise that accomplish what the Group Factors program was aimed toward.”
Reddit will sundown Group Factors by Nov. 8.
Reddit’s blockchain ambitions
Group Factors first launched in 2020 as a strategy to reward customers for constructive exercise in sure subreddits, reminiscent of receiving a considerable amount of upvotes for a remark or put up, with the aim of augmenting consumer engagement and communities.
The factors customers earned had been ERC-20 tokens saved within the platform’s crypto pockets referred to as Reddit Vault. Redditors might then spend their Group Factors on perks reminiscent of emojis or badges, after which the factors can be burned.
Although Group Factors launched on Ethereum, the service migrated to the Layer 2 Arbitrum Nova in August of 2022 to decrease transaction prices and enhance scalability, The Block beforehand reported.
