Moons, the crypto token of Reddit's r/cryptocurrency community, has surged by over 130% following an update by community moderators pointing to a "plan forward" for the token that will impose a hard cap on the supply.
The price of MOON currently stands at just under $0.13, up 133% on the day, according to CoinGecko.
In the update, r/cryptocurrency's mod team reported that, "The Reddit admins will be renouncing the Moons contract," a process that's expected to be completed by the end of the month. The process will mean that no new Moons can be created, and that exchange listings should remain intact, with Moons becoming "completely decentralized" after the contract is sent to a burn address.
"Effectively no one will have control of the contract," the moderators clarified. "Not Reddit, not the mod team."
The moderators further explained that all Moons held in the Community Tank, will be burned, reducing the total supply of Moons to just over 83 million.
As a result, the token will no longer be inflationary—and should any MOON be burned in future, it will become deflationary.
The mod team announced that it "will work with the community to develop a plan forward for Moons," that will include distributing the remaining Moons held in the community wallet, as well as determining whether to burn or distribute Moons from advertising banner rentals and AMAs conducted by the community.
The moderators also revealed that they will "continue to develop bots and use the available API to improve the utility of Moons," including a flair bot that will show r/cryptocurrency subscribers' moon totals, as well as a bot for tipping Moons to other users.
Reddit sunsets Moons
Reddit's Community Points are ERC-20 tokens that were initially minted on Ethereum network, but subsequently moved to scaling network Arbitrum Nova.
In October, Reddit announced that it would be sunsetting its crypto-based rewards program, citing the resourcing needed to support the program, as well as the "regulatory environment."
The news caused prices of r/cryptocurrency's MOON and r/FortniteBR's BRICK to nosedive, with MOON plunging over 80% in a day. Today's price bump has seen it recover some of that lost ground, though it remains down over 78% from its all-time high of just under $0.58, set in July 2023.
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Source: Decrypt.co
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