In Reddit’s own words:
“Community Points are a way for Redditors to own a piece of their favorite communities. As a unit of ownership, Points capture some of the value of their community. They can be spent on premium features and are used as a measure of reputation in the community.”
Ultimately points are an ERC-20 token. A type of cryptocurrency on the Ethereum blockchain.
Users will earn them based on their contributions to a subreddit.
Each subreddit has their own uniquely named and designed community points. Such as /r/Cryptocurrency’s “Moons” and /r/EthTrader’s “Donuts”
On July 22, Reddit announced on r/ethereum that it had chosen Arbitrum for scaling Reddit’s Community Points (RCP) to the Ethereum Network. RCP is an ERC-20 token, and Reddit plans to scale it further and offer additional use cases for the crypto by deploying it on the Ethereum mainnet.
After receiving proposals from several Ethereum scaling solutions, the social media giant chose Arbitrum since its optimistic rollups (layer two constructions that run on top of Ethereum’s base layer) are the most promising ones for scaling RCP.
Users earn Community Points from submitting comments and posts to the sub. When users upvote or downvote that content the score will help decide how many points the user earned during the weekly distribution.
To start there will be 75M tokens released, per subreddit, to account for historical contributions.