The Reddit admins will renounce the Moons contract as part of the token’s revival process.
When Reddit admins announced plans to sunset the community points initiative, the crypto society cried foul, accusing them of dumping Moons (MOON) tokens ahead of the initiative’s termination. The users wanted to revive the Moons crypto project, leaving Reddit admins out of the deal.
In an update published on Nov. 14, moderators of the r/CryptoCurrency subreddit said that the Reddit admins “will be renouncing the Moons contract, and it is expected to be complete by the end of this month.” With the updated version of the smart contract, no new MOON could be created, although exchange listings will remain intact.
“This means that Reddit will give up control of the contract and send it to a burn address, so that effectively no one will have control of the contract. Not Reddit, not the mod team.”r/cryptocurrency moderators
All Moons held in the Community Tank will be burned as part of the update. It will lower the token’s total supply from nearly 126 million MOON to 83.2 million MOON. The move is expected to make MOON a deflationary token.
Amid the news, MOON skyrocketed 150%, rising to $0.17, according to data from CoinGecko.
Moons are ERC-20 tokens that Reddit awarded to users for their contributions to the r/CryptoCurrency subreddit through posts or comments. These tokens can be traded, tipped, or used within the community for various purposes.
As crypto.news reported, Reddit decided to shut down the Moons project launched in 2020, citing the challenging regulatory landscape and issues with scalability as primary reasons for the move. In its early days, the Community Points program was built on the Ethereum (ETH) blockchain. However, to reduce transaction fees and address scalability concerns, it transitioned to the layer-2 network called Arbitrum Nova in August 2022.