Reddit’s cryptocurrency community was surprised on Tuesday morning (14) with a rapid rise in the social network’s native token, the Moon. After an update announcement by r/cryptocurrency moderators, the value of the currency skyrocketed, reaching a valuation of over 160%.
According to data from CoinGecko, the token’s price, which previously hovered around $0.12, has increased by 168% in the past 24 hours. The rise comes in the wake of a series of strategic changes announced by r/cryptocurrency moderators, which promise to significantly reshape the token’s dynamics.
One of the major changes announced concerns the cancellation of the Moons contract by Reddit administrators, a process that should be completed by the end of this month.
This move means that no new lunar units will be issued, which guarantees the preservation of the exchange listings and gives the token a “decentralized” status after the contract transfer.
“No one will have control over the token”
Moderators highlighted the token’s new governance approach: “No one, neither Reddit nor the moderation team, will have control over the contract”. This independence is a significant change in token management, suggesting a more autonomous and decentralized future for Moon.
Additionally, it was announced that all tokens stored in the community wallet will be burned, reducing the total supply to just over 83 million units.
The move, moderators say, will transform Moon into a “non-inflationary” token, with the potential to become deflationary as more tokens burn in the future.
“Reddit admins will burn all moons in the community tank, and this should also be completed by the end of the month. This reduces the total supply from approximately 125,969,899 to 83,205,951.” they said.
The moderation team also communicated plans to work with the community in formulating future strategies for the remaining tokens. This includes deciding whether to burn or distribute tokens collected through banner ads and community-run AMAs.
In an effort to increase the usefulness of moons, the moderators announced the development of bots and the use of the available API. They will include a bot that displays the Moon totals of community subscribers, as well as a bot to facilitate Moon tipping to users.
Reddit Community Points, like Moon tokens, are based on ERC-20 technology and were originally launched on the Ethereum network and later ported to the Arbitrum network.
The rise in Moon prices comes after a challenging period for Reddit tokens. In October, the platform announced the closure of its cryptocurrency-based rewards program, resulting in a drastic drop in the prices of MOON and BRICK, the latter used by the r/FortniteBR community.
Despite the recent recovery, the Moon is still significantly below its all-time high measured in July 2023.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
