A big surprise for MOON holders: Reddit’s community token is finally going to get a utility aspect back. The moderators in charge of the project announced that MOON was becoming deflationary following a massive burn and that no new tokens would be issued. In addition, a new roadmap is planned for the token that had been consigned to oblivion.
Reddit’s MOON is back with a bang
Here’s a piece of news that should come as a surprise to many. When Reddit suddenly announced the end of its “Community Points” rewards program based on the MOON and BRICK tokens, the price of these 2 tokens instantly plummeted. MOON, for example, lost almost 90% of its initial value within an hour of Reddit’s announcement.
And so, while the 2 emblematic tokens of the platform saw their price remain at their lowest, the moderators have just announced that Reddit’s administrators were relinquishing their rights to the MOON and that all the tokens in their possession would be sent to a burn address at the end of the month.
This afternoon, earlier than expected, Reddit proceeded to burn 42.7 million MOON tokens as well as a certain quantity of BRICK tokens (Reddit’s second community token), which was not indicated in the press release.
As a result, the total supply of MOON tokens has fallen from just under 126 million to 83.2 million. Since no new MOON tokens will be issued, the supply is deflationary.
The press release specifies that no new MOON tokens can be created after this date, and that the smart contract will remain unchanged to ensure its decentralization. On the listings side, MOON will retain its status as a regular cryptocurrency and will continue to be traded on the various crypto exchanges and hosted on wallets supporting it.
+300% in less than 24 hours
That’s all it took for the MOON token to regain interest among investors: it saw its share price soar by almost 300% in just 20 hours. As you can see below, MOON has almost regained its early October price:
Evolution of the MOON token price from early October to today
What’s more, in addition to the points we’ve listed above, the team of moderators behind the post said they would be working with the Reddit community to develop the utility aspect of the token, and to assess how the remaining MOONs in the community wallet would be redistributed.
Until now, the MOON token was distributed as a reward to the most active Reddit members on the platform, for example when they received a significant number of upvotes on a post. In August 2022, this service migrated from the Ethereum blockchain to layer 2 Arbitrum Nova.
Now that MOON is fully decentralized, it remains to be seen what will become of it, and this will now depend entirely on its community.
