Much of this thread seems to be a case of blind leading the blind for the sake of hate.

The crypto community has more than its share of scams, memes, hype-driven projects, and speculations which give it a bad and unprofessional perception, but that's just the surface.

Ethereum/cryptocurrency has the power for great change and is actually a pretty complex topic under the hood, the details of which most people will never need to understand, just like the Internet.

Time will tell I guess!

When the world economies collapse and the people are trading in hotdogs atleast I know who to blame... or thank ?

From what I can see the source code for the contract is not published/verified. That is not a good sign in this regard.

Agreed

Disagree. Long term success requires a sound value model, and aligned incentives. The concept needs to be solid, otherwise it is doomed regardless of developer and community efforts.

So initial concept is ofcourse the foundation but surly it's the developer and user participation that drive value long term?

the tokens will be redeemable for "community governance" and "premium features".

The tokens can be traded into ETH and cash, the ability to leave the ecosystem with value for what you have added is a good concept in my opinion.

I totally agree Reddit has been a scummy actor, especially in recent months but I feel if they had acted differently up to this point the reception of this change would be more welcomed.

For example if they had not killed 3rd party app and instead of just wiping the old point system clean they essentially air dropped an equivalent of the new token to users.

I'm no fool, I can see how reddit could use this as another log on the trash fire however I think the concept is good and I'm on the fence to see how it will go from here.

I couldn't have said it better myself.

The only thing I'd add is that through the rise of the interent and email scammers hopped on the train to exploit the technology as much as they could. That doesn't mean we shouldn't use the Internet or that it's inheritently bad, we just have to be aware of the possible dangers when using it.

The Internet had its neigh sayers but I'm sure noone here would disagree that it is overall a useful and beneficial tool.

Cheating is a catch all term and there are various factors that play into it. Ultimately its not in the interest of holders to even try and mess with the system because the only thing it would do is cost them money.

I am going to leave you with this article as it talks about some attack vectors and compares POW to POS, it explains it better than I can: https://vitalik.ca/general/2020/11/06/pos2020.html

It's interesting how I am being down voted for relaying facts about the Ethereum blockchain, come on people you may not like what I am saying but what I'm saying is truth.

An investment for sure but how long could you hold on to them?

I think you need to read more about the technical aspects of how POW actually operates.

It has nothing to do with controlling value, a person who holds a large amount of that crypto can use it as a "stake" think collateral to operate as a consensus node, if they are caught cheating the stake is burned.

It's in their interest to operate efficiently and fairly or lose there stake and overall network value.

This token has no source of value except what Reddit allows it to be redeemed for within their platform.

Well to am extent I agree with you, the ecosystem is the community and if reddit does not foster that it will be worthless. However the fact is MOONs as the example are traded on 3rd party exchanges with an ETH pairing.

I'd bet they implement the ability to blacklist or freeze tokens like the major stablecoins do. And either way if the utility of these tokens depends on their use within the centralized platform of Reddit, that's a simple way to gate access and take them away effectively.

I agree this is a possibility, and it comes into what I have said in other comments about the token implementation. Though again with the example being MOONs I have not heard of this being an issue.

There's no way it does anything to protect against it. In fact it's basically guaranteed to go the same way; people spending money on future false promises from Reddit, and getting rugged.

It protects in the sense that I can trade my tokens with a 3rd part into another. However if Reddit kills tokens on the app then the value would be 0 making that void. I am not saying this is a perfect system, as with any crypto project the success comes from the developers and early users nurturing the ecosystem and driving the value.

I'm actually pro-crypto in general, but token speculation as a tacked on business model trends towards being pretty scammy just because of the incentives and how crypto token value works, basically always goes badly. There is no reason to believe this is or will be the "best system yet", it's worse than the old points system because the people buying will have some expectation of profit.

Me too, I've been in the space for a long time and seen my fair share of scams and BS, but through it all I still believe in the potential crypto has overall. Based of the MOONs this current system has legs in my opinion and can actually financially compensate otherwise unpaid moderators in popular subs for the hard work they do. As a concept this is good.

You scepticism is healthy, and more people need to have this attitude in crypto in general to stop the wild speculation you talk about however it doesn't mean we should dismiss good concepts out of turn. Give it a chance, I'm not saying it will be the best system yet just that it has potential, I don't want to let my overall feeling of what Reddit has done totally blind me to that.

Its built on Ethereum, each community will have a token that runs on the arbitrum L2. Ethereum is one of the most trusted chain in existence, and doesn't burn the environment like Bitcoin.

Look at R/cryptocurrency MOONs which were the test bed for this, it's been in the making for years.

As @schooner said ethereum uses POS which is environmentally friendly as it uses 99% less energy than the old POW mechanism.

Also yes the account could be blocked but the crypto wallet can't be. As far as tracking goes nothing stops as user selling on am exchange amd then purchasing more from another. Tracking is effectively stopped at that point.

Correct it's built on an L2 of ethereum.

Without going into the technicals too much L2s address the some of the scaling issues of ethereum making transactions cheap. Combined with the POS system ethereum now uses, its the best choice. Cheap fees and it doesn't kill the environment.

The point of tokenisation is to create an ecosystem currency, it's not for buying hotdogs with unless you're using hotdog coin.

I do not disagree with much of the criticism Reddit is getting right now, especially the action taken leading up to this being the reason many of us are here right now.

What I will say though is that this community points system is not brand new and has been operating in the big crypto subs like R/cryptocurrency for some time using MOONS.

Now this system does not prevent the over arching power Reddit can exert on its platform but what it has done is meant is moderators are paid, well paid actually from the one I know personally. The value is determined by market forces so Reddit has little to no control over this.

Also because the points are tokens on the Ethereum ecosystem users can move there points to another wallet that is not controlled/created under the Reddit vault system meaning they can't just be taken away.

Again, this move far from fixes many of the problems with Reddit, causing us to move to the feddiverse but as far as the idea of "points" go it's actually the best system yet.

What makes me laugh is what Reddit did recently forcing users to spend or lose the last iteration of points, this is the kind of thing the new system should protect against.