Reddit Moons (MOON) to be Listed on Secondary Market for Trading as USDT Pair
Moons (MOON), Reddit’s official token for the r/Cryptocurrency subreddit, is set to be listed on the Seychelles-based MEXC exchange. MOON will start trading against USDT stablecoin in the Assessment Zone on September 10th, at 7AM (UTC).
Moons will be first tested for trading volume and public interest in the Assessment Zone, accounting for a total of 250 million MOON. Crypto exchanges use this method as a type of legal quarantine if it happens that a cryptocurrency is an elaborate scam. Although exchanges want as many coins listed as possible to get a transaction cut, scams and rug pulls can also wreak havoc on their reputation.
Moons (MOON): Reddit’s Social Credit Monetization
Reddit is the 20th most-visited website on the internet and boasts 430 million active monthly users. The social media platform uses a system called karma to determine the worth of a post or comment. Karma on reddit is calculated based on the number of upvotes or downvotes the post or content receives.
This is where Reddit’s Community Points come in. Launched in May 2020, 1 Community Point on Reddit is mirrored by 1 Community Point on the Ethereum blockchain. Moons is one of the customized tokens incentivizing quality content, distributed in proportion to accrued karma for posts/comments on the /r/cryptocurrency subreddit. Moons are governed by holders who may vote to amend the rules on which the reward system functions.
Moons Built on Ethereum, Uses Arbitrum to Scale
When it was first introduced in July 2020, Moons supply was set to 50 million MOON across r/Cryptocurrency moderators. Content creators can access their MOON stash via Ethereum’s digital wallet equivalents, dubbed Vaults, available through Reddit’s mobile app. Redditors have full custody over Moons as they own private keys, while their Reddit ID is attached to the Vault, using public addresses.
The best way to earn Moons is to be helpful on the r/Cryptocurrency subreddit. Answering questions, giving sound advice, or solving problems have the potential to earn karma. Users are airdropped Moons at the end of 4 weeks in proportion to their accumulated karma.
Given the fact that the subreddit has 5.4 million users with 8,000 active online at any given point, this is more difficult than it sounds. After all, there is so much attention span and unique content to go around. Likewise, posting can often lead to downvotes, slashing Karma.
Additionally, r/Cryptocurrency members can either tip Moons or receive tips into their attached Vaults. At its price peak, on August 21, 2021, MOON reached $0.353, having gone down since by -63%. Predictably, the latest provisional listing on MEXC gave Moons a price boost.
It also appears that Community Points/ Moons made the right call by onboarding the Arbitrum scalability solution for Ethereum. Last November, we covered Arbitrum as the rising star that enables near-instant transactions at negligible fees. Fast forward to this month, and it already grew to $2.65 billion TVL amid airdrop speculation following the milestone Nitro upgrade.
By migrating Arbitrum One chain to Arbitrum Nitro, the L2 network will further lower transaction fees by removing trailing zero bytes from rolled-up transaction batches.
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Reddit’s Tokenization Still on Waitlists
Outside of Moons for r/Cryptocurrency, Reddit at large teamed up with FTX in August. Sam Bankman-Fried’s exchange has FTX Pay, allowing Redditors to pay Community Points’ gas fees directly.
Moreover, they could then migrate Community Points to Arbitrum. Not to be conflated with regular cryptocurrencies, these reputational tokens have the potential to gain monetary value, like Moons. Therefore, Reddit’s Community Points are best understood as customizable blockchain-based reputational tokens, displayed next to Redditors usernames.
Still in beta and subject to waitlists, each subreddit can add a customized Community Point token to incentivize quality content, and unlock features and rewards. Akin to Twitter’s blue-checks, these users then stand out from the crowd, making their content more likely to surface at the top.
If all goes well with tomorrow’s MOON launch, we will likely see more cryptocurrencies for specific subreddits. After all, at 5.4 million, r/Cryptocurrency has more members than there are people in Sydney or Los Angeles.
Do you think Reddit’s experiment with Moons could lead to other subreddit tokens in the future? Let us know in the comments below.