What is Reddit’s BRICK token?
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Founded in 2005, you likely know Reddit as one of the world’s largest social media networks.
Now one of the top 100 websites globally, Reddit is today composed of many thousands of communities called subreddits, which allow users to discuss specific topics, from gaming to music, via moderated message boards.
However, you may not know Reddit has long been interested in cryptocurrency.
In fact, in 2020, the company announced it would launch Reddit Community Points (RCPs), new cryptocurrencies running on Ethereum that represent ownership in specific subreddits.
In Reddit’s words, RCPs “are a way for Redditors to own a piece of their favorite communities.” Put simply, RCPs are meant to be a measure of a user’s reputation and contributions within a subreddit. Redditors earn RCPs by submitting posts and comments to a subreddit.
In this way, RCPs work similarly to the platform’s “karma credits”, which measure the total votes users have earned on their submissions and comments. However, RCPs differ from karma points as there is a specific economic value attached by the market to each token.
To date, there are two subreddits that have launched their own RCP token.
Who Created RCPs?
Reddit Community Points were created by Reddit and formally announced in 2020.
At the time, the company’s developers created the smart contracts that define the RCP rules, and the code was reviewed and audited by the blockchain security firm Trail of Bits.
Of note, since RCP tokens run on Ethereum, users must pay fees with each transaction.
Anticipating that most of its users will not own any ETH, Reddit has said it is prepared to cover some costs while users get accustomed to the technology. (Still, you can always buy ether on a trusted global exchange like Kraken).
How Does BRICK Work?
If you are new to blockchain technology, smart contracts are programs that run on a blockchain and that enforce certain rules decided upon by the developers.
Reddit elected to run its RCP tokens on the Ethereum blockchain.
This means BRICKs are:
- Fully owned and controlled by users who create a Vault on the Reddit app (which acts as an Ethereum wallet).
- Interoperable with all other Ethereum applications and assets.
- Pseudonymous, meaning nothing connects ownership of an RCP token to the name and identity of a Redditor.
BRICK is the official cryptocurrency of the r/FortNiteBR or Fortnite Battle Royal subreddit, dedicated to the popular electronic game created by Epic Games.
According to r/FortNiteBR guidelines, all posts in the subreddit need to be Fortnite related, or associated to the culture in some way.
The subreddit is supported by various developers, and the Redditors communicate by mostly sharing tips and tricks and videos of their characters in game.
Redditors earn BRICK based on the content they produce on the r/FortNiteBR subreddit. This could be anything from original posts to commenting on other people's content.
Reddit will initially release 50 million BRICK tokens to the community, based on the amount of karma they have earned in the subreddit to date. According to the software rules, there will be a set number of tokens distributed monthly using the same method.
Reddit also sets a certain number of BRICK aside to distribute to the community moderators who manage the subreddit and to Reddit itself.
The Vault is a way for Redditors to view their earned BRICK, claim any new BRICK tokens they are allocated and spend BRICK tokens on various offerings. Vaults are only accessible through Reddit’s mobile applications.
Similar to any cryptocurrency wallet, Vaults generate a public address, where BRICKs are stored, and private key, which lets users access and utilize them.
Reddit can only see a Redditor’s public address, and does so to check user balances.
Why Does BRICK Have Value?
The goal of RCP tokens is to align the interests of Reddit users, advertisers and the platform.
On the day of the launch, Reddit will distribute 50 million BRICK tokens to community contributors based on karma earned in the community. (This is contingent on the user having set up a Vault.)
Reddit will then go on to distribute 50 million tokens in the first year, given out monthly. Over time, the amount of tokens will decrease until 250 million BRICK have been distributed.
Like many other cryptocurrencies, the supply of BRICK is limited, meaning that according to the software’s rules, there will only ever be 250 million BRICK.
Once Redditors receive BRICK there are a variety of ways that they can use them.
- Buy special membership to the r/ForNiteBR subreddit, costing 500 BRICK per month (roughly $5). Benefits include special loyalty badges and receiving the ability to reply using gifs and animated emojis, among other things.
- Buy specialized badges and awards
- Take part in polls to improve the subreddit, weighted by the amount of tokens users have earned in their Reddit account’s lifetime.
- Tip other users for their content.
Each time a user spends BRICK on Reddit, the protocol burns them, meaning that they are destroyed and never can be used again.
This means the amount of BRICK circulating will always go down, thus hopefully increasing the value of the remaining tokens.
Of note, half of the monthly burned tokens will be reintroduced into the economy the following month, ensuring that there will always be new BRICK to distribute, even after the 250 million tokens have been distributed.
Kraken's Crypto Guides
- What is Bitcoin? (BTC)
- What is Ethereum? (ETH)
- What is Ripple? (XRP)
- What is Bitcoin Cash? (BCH)
- What is Litecoin? (LTC)
- What is Chainlink? (LINK)
- What is EOSIO? (EOS)
- What is Stellar? (XLM)
- What is Cardano? (ADA)
- What is Monero? (XMR)
- What is Tron? (TRX)
- What is Dash? (DASH)
- What is Ethereum Classic? (ETC)
- What is Zcash? (ZEC)
- What is Basic Attention Token? (BAT)
- What is Algorand? (ALGO)
- What is Icon? (ICX)
- What is Waves? (WAVES)
- What is OmiseGo? (OMG)
- What is Gnosis? (GNO)
- What is Melon? (MLN)
- What is Nano? (NANO)
- What is Dogecoin? (DOGE)
- What is Tether? (USDT)
- What is Dai? (DAI)
- What is Siacoin? (SC)
- What is Lisk? (LSK)
- What is Tezos? (XTZ)
- What is Cosmos? (ATOM)
- What is Augur? (REP)
Why Should I Use BRICK?
You may be interested in BRICK if you want to play a role in maintaining the r/FortNiteBR subreddit or are already doing so.
If you are already an active content creator on r/FortNiteBR, you may consider creating a Vault to interact with the BRICK tokens you’ve earned to date. You may also want to purchase BRICK to tip the creators of your favorite content.
Investors may also be interested in BRICK should they believe there is long-term opportunity in owning a cryptocurrency widely used by the popular Reddit Fortnite community.