Moons Surge Double-Digits as Reddit Renounces Contract, Burns 98,000 Tokens

Moons, the crypto token of Reddit's r/cryptocurrency community, is up by double-digits on the day after Reddit "officially renounced" the Moons contract.

The social media platform burned its remaining 98,000 Moons tokens as part of the process, which also imposes a hard cap on the supply of approximately 83 million Moons.

The r/cryptocurrency subreddit's mod team hailed the move as a "significant milestone" for the community in a statement, noting that it "now has assurance that there will be no further changes to Moons' contract in the future." With no requirement for a new token to be deployed, Moons can "easily retain existing exchange listings," the mod team said.

The price of Moons currently stands at $0.158456, up 11% on the day, per CoinGecko data. Over the past month, the token has surged over 150%, following community moderators' announcement that they were preparing a "plan forward" for the token.

The r/cryptocurrency mod team announced yesterday that it would work on restoring features including memberships, governance and tipping, as well as potentially restarting distribution of Moons, "though exactly how that will work remains to be seen."

What are Reddit Moons?

Reddit Moons, or Community Points, are ERC-20 tokens that were initially minted on the Ethereum network and subsequently moved to scaling network Arbitrum Nova.

In October, the social media platform announced that it would be winding down its crypto-powered rewards program, which saw users earn points for posting in certain communities. The points could be redeemed for Reddit perks including badges, emotes and GIFs.

Reddit cited the high cost of resourcing and the "regulatory environment" in its decision to sunset its Community Points program.