The crypto token Moons, associated with Reddit’s r/cryptocurrency community, has witnessed a surge of over 130% following a notable update by community moderators outlining a strategic direction for the token.
The proposed plan entails imposing a hard cap on the token’s supply, a move aimed at fundamentally altering its dynamics.
In the provided update, the mod team of r/cryptocurrency conveyed that “The Reddit admins will be renouncing the Moons contract,” a process anticipated to conclude by month-end.
This renouncement signifies a shift toward full decentralisation, as it will render the creation of new Moons impossible.
Furthermore, the contract’s transfer to a burn address is expected to solidify the decentralisation process.
The moderators clarified that:
“Effectively no one will have control of the contract. Not Reddit, not the mod team.”
As part of this initiative, all Moons residing in the Community Tank will undergo burning, effectively reducing the total supply of Moons to slightly over 83 million.
Consequently, the token is poised to transition from an inflationary to a potentially deflationary model, depending on future burning events.
The mod team announced its commitment to collaboratively shaping the future trajectory of Moons with the community.
This involves deliberations on the distribution of remaining Moons from the community wallet, as well as decisions regarding the burning or distribution of Moons derived from advertising banner rentals and community-conducted AMAs.
Beyond these structural changes, the moderators disclosed their ongoing efforts to enhance the utility of Moons through the development of bots and utilisation of available APIs.
These enhancements include a flair bot showcasing moon totals for r/cryptocurrency subscribers and a tipping bot facilitating Moon transactions among users.
Notably, Reddit’s Community Points, including Moons, are ERC-20 tokens initially minted on the Ethereum network and later migrated to the scaling network Arbitrum Nova.
This development unfolds against the backdrop of Reddit’s announcement in October, declaring the sunset of its crypto-based rewards programme.
The decision was attributed to the resource-intensive nature of sustaining the programme and considerations related to the regulatory environment.
* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.
