Reddit could soon introduce its 500 million user base to NFT-backed karma tokens
The transition from Web 2.0 to Web 3.0 is starting to take shape, as more and more companies announce crypto integration with their services, accelerating the global adoption for crypto assets. Social media platforms like Twitter, TikTok and even Discord are planning to expose their user bases to NFTs, and the pack is now joined by Reddit, which has an estimated user base of 500 million. If the latest tweets from Reddit engineer Rahul (deleted in the meantime, cited by CoinTelegraph) are any indication, the platform could soon convert its karma points into Ethereum-based tokens.
Earlier this year, Reddit launched its own layer-two rollup using Arbitrum technology to test a new system that involves Community Points. Offchain Labs’ Arbitrum network enables the creation of separate blockchain instances that can store specific tokens controlled by the users themselves, independently of Reddit. Rahul’s latest tweets note that the platform has moved community points from around 80,000 users pertaining to the r/cryptocurrency and r/FortNiteBR subreddits on the Arbitrum-based Rinkeby Testnet that should handle gasless transactions. This is very important for the tokenomics of Reddit’s new system, since current Ethereum gas fees are the highest among all layer-one protocols. Additionally, Reddit will allow subreddits to fork blockchains through community-based decisions in order to explore new Web 3.0 monetization strategies.
Reddit’s intent to implement NFTs was expressed in a job listing from October 22 looking for a senior backend engineer to handle a platform that allows “millions of users to create, buy, sell and use NFT-backed digital goods.” NFTs and the metaverse concept are the foundations for Web 3.0, and the job listing suggests that “NFTs will play a central role in how fans support their favorite creators and communities.”