Dominating the crypto landscape, social tokens have emerged as a unique form of cryptocurrency employed by brands for monetization. The value of a token is intricately tied to the brand issuing it and is used by holders as a way to experience a sense of belonging to a certain community.ย
To understand this better, we take a deep dive into MOON, the social token of r/Cryptocurrency- the largest crypto subreddit with over 6 million users.
To understand MOONs, letโs first take a look at their foundation.ย
Reddit Community Points
The Reddit Community Points (RCP) system, launched in 2020, is based on blockchain technology and is used to reward users for their contributions to the platform.
Community Points are digital tokens obtained through active participation in specific subreddits, equipping users with access to unique benefits and features within those online communities.
RCPs are a type of cryptocurrency. They have a real-world monetary value thatโs decided by the market and can be bought, sold, and traded between individuals around the world just like other types of digital assets.ย
Any subreddit that supports RCPs can be used to earn rewards. Of the 100,000+ subreddits that exist today, only a small handful have launched their own Reddit-based cryptocurrencies.
How Do RCPs function?
The initial development occurred on the Ethereum blockchain before transitioning to Arbitrum Nova, a Layer-2 scaling solution designed in 2021 to tackle Ethereumโs scalability challenges.
Community Points are stored within the Reddit Vaultโan Ethereum wallet developed by Reddit, accessible through the mobile app. Within this Reddit Vault, users have the capability to view Community Points from various subreddits, perform transfers to other users, and utilize them.
The token that emerged from the Reddit Community Points initiative is MOON, swiftly gaining traction among crypto enthusiasts. The notable increase in MOONโs popularity during July 2023 can be attributed to Redditโs updated Terms of Use, which now allow the trading of tokenized Community Points.
What is a MOON?
Now that we have a background on the origin of tokenized RCPs, letโs look at their applications within the Reddit ecosystem, with MOON token standing out as a prominent example.ย
Boasting a community of over 6 million members, r/CryptoCurrency stands as the premier subreddit for discussions and updates pertaining to the world of cryptocurrency.
Started in May 2020 as a component of Redditโs Community Points initiative, r/CryptoCurrency Moons (MOON) have emerged as a significant facet. Functioning as ERC-20 tokens, these Moons serve as rewards distributed to users who contribute actively to the subreddit.
The accumulation of Moons hinges on usersโ engagement in crafting posts or comments that resonate with fellow members, garnering upvotes in the process. The amount of MOONs earned correlates directly with the number of upvotes received. Apart from this, individuals can also amass MOONs by engaging in various other community endeavors, such as participating in surveys and similar undertakings.
How it Works: Exploring Tokenomics
Users can earn MOONs by actively contributing to the subreddit, with potential rewards tied to their level of contribution. With a capped supply of 250 million tokens and a significant user base of over 6 million on r/Cryptocurrency, the cryptocurrency offers various uses.ย
The token distribution began with 50 million MOONs distributed based on earned karma since the subredditโs launch. Subsequently, monthly distributions followed a pattern of decreasing by 2.5% per cycle. This design results in a 1% annual growth in distributed MOONs.
Functioning as an ERC-20 token, MOONs are compatible with Ethereum-based cryptocurrencies and are separate from Reddit, governed by audited smart contracts.ย
These contracts manage balances, transfers, distribution, and the acquisition of Special Memberships. Gifting MOONs to other users incurs a network transaction fee (gas fee) in ETH, enhancing the tokenโs utility.
The Vault: Crypto Wallet of Redditย
The Vault serves as a method for Reddit users to monitor their MOON balance and make use of it for different options. Accessible exclusively through Redditโs mobile apps, Vaults perform similarly to typical cryptocurrency wallets.ย
They produce a public address for the storage of MOON tokens and a private key that facilitates users accessing and managing their holdings.
What is The Utility of a MOON?
MOONs serve multiple functions within the r/CryptoCurrency subreddit community. These unique tokens can be used to acquire special membership badges that offer exclusive content, features, and privileges. They also hold tradable value on various cryptocurrency exchanges and can even facilitate real-world purchases.
They can be traded, tipped, or spent for various purposes. One of their primary applications is obtaining the r/CryptoCurrency Membership, which grants users access to enhanced features like GIF embedding in comments, unique emotes, and personalized flairs for their usernames.
Additionally, MOON crypto tokens can be employed to secure banner space for advertising on the subreddit, adding an element of visibility and engagement.
Participating in the subredditโs governance is another role for MOONs. They allow users to vote on important community decisions, like influencing matters like community management and the future distribution of MOONs. The voting weight a user holds is directly tied to the number of MOONs theyโve earned.
Expanding beyond Reddit, MOONs have gained traction as listings on both decentralized and centralized exchanges enable individuals outside the platform to purchase and speculate on these tokens. This broader interest reflects the belief in the long-term potential and increasing popularity of a cryptocurrency intrinsically tied to Redditโs ecosystem.
Analyzing MOONโs Market Performance
Source: Coingecko
According to MOONโs price chart, which shows its performance in the market since its origin, the MOON token price has seen a 268% overall hike.
As previously mentioned, July 2023 saw a strong boost in MOON token price due to the release of Redditโs new Terms of Use, which permitted the trading of tokenized Community Points.
Source: Coingecko
In the Last 24 Hours
According to CoinGecko, the trading volume of r/CryptoCurrency Moons (MOON) is $408,195 in the last 24 hours, representing a 23% increase from one day ago and signaling a recent rise in market activity.
All-time High And Low for r/CryptoCurrency MOONs
The highest price paid for r/CryptoCurrency Moons (MOON) is $0.577657, which was recorded on July 19, 2023. The current MOON token price is -42.20% lower than the all-time high price.
The lowest price paid for r/CryptoCurrency Moons (MOON) is $0.00829375, which was recorded on December 30, 2020. The current price is 3,925.62% higher than the all-time low price.
Market Cap of r/CryptoCurrency MOONs
The market capitalization of r/CryptoCurrency Moons (MOON) is $34,543,293. It is measured by multiplying the token price with the current supply (110 million tokens) of MOON tokens.
MOON: An Investment Opportunity?
The decision to park your funds with the MOON token is dependent on how you value the tokenโs utilities and the r/Cryptocurrency subredditโs longevity.ย
As a holder of MOON token, you will be able to take part in r/Cryptocurrencyโs governance voting process and use MOONs to tip your favorite content creators on the site, among others.ย
Lastly, you may believe in the long-term opportunity of possessing a widely used crypto-asset within a popular Reddit community such as r/Cryptocurrencyโs MOON token.
Where Can You Buy MOON?
MOON crypto tokens are exchangeable on both decentralized and centralized crypto exchanges. The primary platform for purchasing and trading MOONs from the r/CryptoCurrency subreddit is Sushiswap on the Arbitrum Nova network.
The MOON/WETH trading pair, with a trading volume of $76,075.97 in the previous 24 hours, is particularly active there. Additional well-liked choices encompass MEXC and BitMart.
Conclusion:
MOON crypto serves as an innovative illustration of how community reward systems, fueled by blockchain technology, have the potential to stimulate online engagement and foster collaborative efforts.
A creation emerging from the vibrant Reddit community r/Cryptocurrency, it stands as a testament to the malleability of blockchain technology. In its essence, MOON crypto token operates as a social token, a digital entity that transcends traditional boundaries by binding online communities closer together through shared ownership. Its emergence showcases that, while we often marvel at the achievements of this digital age, our trajectory of navigating the bizarre world of blockchain has only just begun.
