Reddit has partnered with FTX to enable users to pay gas fees on transactions using Community Points. As a result of the partnership, FTX Pay will be integrated as a cryptocurrency exchange service, enabling new benefits for Reddit Community Points.
Reddit’s new move is similar to Twitter’s decision to integrate a blockchain rewards system with the introduction of a Bitcoin tipping feature earlier this year. This article will teach us how to get ETH in the Reddit vault with and without FTX.
Table of Contents
What are Reddit Community Points?
Reddit Community Points are a way for Redditors to represent that they own a piece of their favorite communities. These points are earned by contributing to the community by creating content and moderating.
These points represent ownership and reputation within the community and can also be used for community governance, moderation, and unlocking premium features.
Each community has its own points that can be customized with its name, symbol, distribution rules, and uses.
These points are now available on Arbitrum Nova, i.e., a scaling network on the Ethereum mainnet. Arbitrum Nova uses AnyTrust technology which provides an energy-efficient solution.
Community Points is an opt-in feature. So, if a moderator wishes his subreddit to opt for Community Points, they can fill this Google form.
What is the Distribution Process of Community Points?
Community Points are distributed every four weeks based on contributions users make to the community. Here is a quick overview of points distribution:
When Community Points are introduced in a subreddit, an initial distribution is based on past contributions.
The amount of Points in the initial distribution depends on the age and size of the subreddit. Contributors’ shares are distributed based on historical karma earned in the subreddit.
To be eligible for the initial distribution, users must have been active in the community, with at least one post or comment in the last three months.
After the initial distribution, Points are distributed every four weeks. The first distribution cycle makes five million Points available, which decreases by 2.5% with each subsequent cycle.
Points eventually reach a steady state in which the entire supply grows at 1% yearly. In addition, 50% of burnt Points in various special memberships are redistributed in each cycle.
Every four weeks, Reddit makes a post in the subreddit with a list as a CSV file with each user’s Contribution Score, based on karma earned during that period and the distribution rules the community has set.
After the post, the community has one week to review the list and propose changes through the weighted polls and governance features. After one week, the Contribution Scores are finalized.
Reddit signs and publishes the final data as a second post, and Community Points are distributed to community members based on those scores.
Communities can design their own distribution rules for their Community Points. Moderator teams collaborate with Reddit to design an initial set of distribution rules when Community Points.
After Points have been launched, the community can continue changing distribution rules through Governance.
What is a Reddit Vault?
In Simple terms, Reddit Vault is a crypto wallet inside the Reddit app that users can use to store & manage their Community points.
It has its own public address, i.e., the address on the blockchain where users’ Community Points are stored. Reddit Vault is only available on official Reddit Android & iOS apps.
Disclaimer: Reddit does not have access to a user’s Vault or the Points inside of it. Also, Points are tied to the Vault that was active when the distribution was finalized. Therefore, if a user changes the Vault between when the distribution is proposed and when Points are distributed, their Points will go to the updated Vault.
How to Create a Reddit Vault?
This section will teach how users can create their Reddit Vault.
- Step 1: Open the Reddit Mobile App. Click on the profile picture in the upper left corner. We will see an option of Reddit Vault.
- Step 2: Click on
Vault. We will see an introduction to Reddit Community Points. Click on
- Step 3: Now, it’s time to agree to Reddit’s terms and conditions. Click on
Agree and Continue.
- Step 4: Users with an existing vault can also choose
Use Existing Vaultand write their recovery phrase to restore their previous vault.
- Step 5: New Vault users will see an option of Recovery Phrase similarly to what we see in the MetaMask Wallet.
- Step 6: Now, users will have to perform Manual Backup of the Recovery Phrase.
- Step 7: Finally, as we have seen in MetaMask, we have a password. Similarly, we have a Reddit Vault password.
- Step 8: After Reddit Vault password Confirmation, We will see a success message on screen, and our Reddit Vault is created.
How to get ETH in Reddit Vault using FTX?
In this section, we will learn how users can get ETH in their Reddit Vault using FTX crypto exchange.
- Step 1: Click on
- Step 2: We will see why ETH cryptocurrency is required for network fees. Click on
Continue to FTX.
- Step 3: If a user has an existing FTX account, they can directly login. But, there is a need to signup & register for new users.
- Step 4: Now, we can easily add ETH to our Reddit Vault using FTX. As we can see, that destination address here is the public address of the user’s Reddit Vault.
How to get ETH in Reddit Vault without using FTX?
As FTX is a centralized crypto exchange, some Reddit users don’t like the idea of using a centralized exchange due to KYC issues.
In this section, we will learn how users can get ETH in their Reddit Vault using the Arbitrum Nova bridge.
- Step 1: Go to bridge.arbitrum.io. We will see a Welcome screen. Then, click on
Agree to Terms.
- Step 2: Click on the
- Step 3: We will see three wallet options, i.e., MetaMask, Wallet Connect, Coinbase Wallet, and Torus. In this article, we will be selecting and using MetaMask Wallet as it is the most widely used and one of the most popular wallets.
- Step 4: Click on
MetaMask, and Our Wallet is Connected.
- Step 5: Now, Toggle the receiving network from
- Step 6: Now, the user can write the amount of ETH they want to be bridged to Arbitrum Nova. We will see a gas estimate on the Right Hand Side.
- Now, Click on
Move Funds to Arbitrum Nova. We will see a MetaMask popup notification with an estimated gas fee.
- We have to check the gas fees and Click on
Confirm. Once approved, we have to enter the amount of USDC we want to bridge.
- It will take around 10-90 minutes (depending on the gas fees user has chosen) for our funds to be bridged on Arbitrum Nova.
- We have to check the gas fees and Click on
- Step 7: Also, we need to add the Arbitrum Nova network to our MetaMask Wallet. Go to chainlist.org/chain/42170 and Click on
- Step 8: Click on the
- Step 9: Click on the
Switch Networkbutton. This command will switch the network from the existing mainnet/test network to Arbitrum Nova Network.
- Step 10: Now, we can quickly send our ETH in Arbitrum Nova to our Reddit Vault address.
- Users can open their MetaMask Wallet.
- Click on the
Sendbutton in the middle.
- Now, Input the amount and add the Reddit Vault address they want to send. We can see the completed transaction in Arbitrum Nova Blockchain Explorer.
We would like to credit Reddit User pbjclimbing for this method.
How to find the Public Address of Reddit Vault?
In this section, we will learn how users can find their own public address in Reddit Vault.
- Step 1: Open the Reddit Mobile App. Click on the profile picture in the upper left corner. We will see an option of Reddit Vault. Click on
- Step 2: Now, Click on three dots on the right-hand side where Vault is written.
- Step 3: We can see our public address as shown below.
Reddit has a long history in the Crypto & Blockchain Space. Last month, Reddit launched a new NFT-based avatar marketplace that lets users pay a fixed price to purchase blockchain-based profile pictures.
Reddit first started accepting bitcoin in its merchandise store, i.e., RedditMarket, in 2015. Later, it stopped accepting Bitcoin payments on its Gold Membership in 2018. Reddit now seems to be getting closer to crypto adoption.
Frequently Asked Questions (FAQs)
What are Reddit’s Collectible Avatars?
These are limited-edition avatars made by independent artists in partnership with Reddit, with additional benefits. For example, suppose a user sets their Collectible Avatar as their avatar on Reddit. In that case, a user can mix and match the avatar gear with other Reddit avatar gear and accessories, and their profile pictures will have a glow-like effect in the comments sections.
Why did Reddit Choose Polygon for Collectible Avatars?
Reddit chose Polygon for its low-cost transactions and sustainability commitments, i.e., going carbon-negative in 2022 and climate positive beyond that.
How can artists benefit from the Collectible Avatars?
Artists will get paid for every Collectible Avatar sold on Reddit and are entitled to receive royalties from secondary sales of their Collectible Avatars on open marketplaces. Aspiring artists interested in joining the Reddit NFT Marketplace can join Reddit’s creator waitlist.
How can a user delete his Reddit Vault?
Due to the immutable nature of Blockchain, Users cannot permanently delete an account on the Ethereum network. So, Reddit users can’t delete their Reddit Vault. However, users can sign out from their Vault, which will delete Vault from their local device and delink it from their Reddit account.
Why are some users not able to see Reddit Vault option?
Reddit Vault option is only available for those users who meet one of the following conditions, i.e., (i) have unclaimed points (ii) have a non-zero points amount (iii) subscribed to a subreddit with Community Points.