Moon (MOON)
What is Reddit MOON?
A Reddit cryptocurrency? Yes, it’s real.
In fact, the social media giant will launch a new feature called Reddit Community Points (RCPs) in 2020 as a way to reward its millions of content creators.
If you’re already a Reddit user, you likely know the website is composed of thousands of custom forums called subreddits, which allow users to discuss topics via moderated message boards.
While a newer feature, RCP tokens are similar to other incentives the company has offered in the past that enable users to earn rewards for their reputation and contributions.
For instance, you might have earned “karma credits” in response to comments or commentary. The difference between RCPs and karma points is that RCPs are crypto assets that have a monetary value that’s decided by the market.
So, if a subreddit you follow supports RCPs, this means you can begin to earn cryptocurrency by engaging with its content and community. To date, there are two subreddits that have launched their own Reddit cryptocurrency.
Who Created RCPs?
Reddit made a splash in 2020 when it announced it would use crypto to reward Redditors.
At the time, the company’s developers created the smart contracts that define the RCP rules, and the code was reviewed and audited before going live on Ethereum.
Note: RCPs are Ethereum tokens, meaning users must pay fees with each transaction. (These fees incentivize a distributed network of users to run the Ethereum software).
If you don’t yet own any ether, that might be OK to start. Reddit has said it is prepared to cover some costs while users get accustomed to the technology. (Still, you can always buy ether on a trusted global exchange like Kraken).
How Does MOON Work?
RCP tokens run on Ethereum, making Reddit cryptocurrencies real cryptocurrencies.
MOON is the official cryptocurrency of the r/Cryptocurrency subreddit, dedicated to the news, discussions and analysis of cryptocurrency.
This means MOONs are:
Interoperable with all other Ethereum applications and assets.
Owned and controlled by users
Pseudonymous (nothing connects an RCP token to the identity of a Redditor).
According to r/Cryptocurrency guidelines, all posts in the subreddit need to be cryptocurrency related, or associated to the culture in some way.
The subreddit is supported by various developers, and Redditors communicate by mostly sharing trading tips, humorous content and general news associated with cryptocurrencies.
Earning MOON
Redditors earn MOON tokens based on the content they produce on the r/Cryptocurrency subreddit. This could be anything from original posts to commenting on other people's content.
If you are an active user, you can earn MOONs from the protocol itself, based on the amount of karma points you generate, or via tips from other Redditors.
Reddit will initially release 50 million MOON tokens to the community, with each Redditor receiving some based on the amount of karma earned in the subreddit to date.
According to the software rules, there will be a set number of tokens distributed monthly using the same method. Reddit also set aside a certain number of MOON to distribute to the community moderators who manage the subreddit and to Reddit itself.
Vault
The Vault is a way for Redditors to view their MOON balance and spend them on various offerings. Vaults are only accessible through Reddit’s mobile applications.
Similar to any cryptocurrency wallet, Vaults generate a public address, where the MOONs are stored, and private key, which lets users access and utilize them.
Of note, Reddit has access to the ledger balances of RCP tokens, meaning that they can use a Redditor’s public address to check their balance and send them rewards.
Why Does MOON Have Value?
RCP tokens are designed to align the interests of users, advertisers and the platform itself.
On the day of the launch, users will want to have their Vault set up to receive a portion of the 50 million distributed tokens. Reddit will then go on to distribute an additional 50 million tokens in the first year, distributed monthly.
Over time, the amount of monthly tokens released will decrease until 250 million MOONs have been distributed.
Like many other cryptocurrencies, the supply of MOON is limited, meaning that according to the software’s rules, there will only ever be 250 million MOONs.
Spending MOON
Once Redditors receive MOON tokens, they may use them to:
Buy a special membership to the r/Cryptocurrency subreddit, which costs 1,000 MOON per month. Benefits include special loyalty badges and receiving the ability to reply using gifs and animated emojis, among other things.
Buy specialized badges and awards
Take part in polls to improve the subreddit, weighted by the amount of tokens users have earned in their Reddit account’s lifetime.
Tip other users for their content.
Once users spend MOON on Reddit, the protocol removes them from circulation. This means the amount of MOON available to users is expected to go down over time, hopefully increasing the value of the remaining tokens.
However, half of all MOON tokens burned each month will be reintroduced to the economy the following month, ensuring that there will always be new MOON to distribute even after the 250 million tokens have been released.
Source : KRAKEN
Tags:
Cryptocurrency