Reddit's r/cryptocurrency subreddit relinquishes control of Moons token contract

Reddit's r/cryptocurrency subreddit gave up administrative ownership of the contract powering its cryptocurrency called Moons .

The decision follows Reddit’s move to sunset its community points program that introduced Moons.

The subreddit’s moderators renounced control over the token’s contract, located on the Arbitrum Nova network. This action ensures the contract’s state, ensuring that it remains unchangeable and no new tokens can be minted.

Accompanying this action, the moderators burned 98,000 Moons tokens from the community pool, which along with prior burns lowered the total supply from around 126 million to 83 million.

“This is a significant milestone as the community now has assurance 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 the subreddit introduced in 2020, designed to incentivize user engagement. The program’s discontinuation, announced by Reddit in October, immediately impacted the Moon token’s market value. The price of Moon tokens sharply dropped from $0.25 to less than $0.04 within hours.

Moons' market resurgence

A few weeks later, a recovery in the token’s value was observed after the subreddit moderators decided to give up control of the contract in November, ensuring the token’s ongoing existence, independent of Reddit’s community points program and any centralized governance.

Since confirming the plan to remove control of the contract, the value of Moon tokens has seen a substantial increase, soaring over 200% from $0.05 to $0.2. Currently, the token trades at $0.15.

Prior to Reddit’s official statement, on-chain data suggested that many moderators associated with the subreddit liquidated large quantities of Moons. Following these transactions, these moderators were removed from their positions.