Reddit’s r/cryptocurrency subreddit has relinquished administrative ownership of the contract powering a token called Moons.
The moderators of the subreddit have relinquished control of the token contract on the Arbitrum Nova network. This action guarantees the state of the contract, ensuring that it remains immutable and that new tokens cannot be created.
This decision follows Reddit’s prior decision to end its Community Points program, which first introduced Moons tokens in 2020.
Additionally, the moderators burned 98,000 Moons tokens from the community pool, which, along with previous burns, reduced the total supply from approximately 126 million to 83 million.
“This is an important milestone as it gives the community confidence that there will be no further changes to Moons’ contract in the future,” the subreddit’s official statement read.
Moons tokens were part of Reddit’s Community Points program for subreddits, introduced in 2020, designed to encourage user engagement. The program suspension announced by Reddit last October had an immediate impact on the market value of the Moon token. The price of the Moon token plummeted from $0.25 to less than $0.04 in a matter of hours.
Moons’ market revival
A few weeks later, a recovery in the token’s value was observed after subreddit moderators decided to relinquish control of the contract in November, ensuring the continued existence of the token independent of Reddit’s community points program and centralized governance.
Since confirming plans to remove control of the contract, the value of the Moon token has seen a significant increase, surging more than 200% from $0.05 to $0.2. The token currently trades for $0.15.
Prior to Reddit’s official statement, on-chain data showed that many moderators associated with the subreddit had liquidated large amounts of Moon. Following these transactions, the arbitrator was removed from his position.
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