To The Moon: Reddit Relinquishes Control of MOONs Sending Price Soaring 155%
Reddit’s Moons token took a major step towards full decentralization as admins plan to renounce control of the smart contract. This news ignited a 155%+ price surge for the formerly inflationary community token.
Moons are earned by contributors on the r/cryptocurrency subreddit. Reddit admins had previously announced they would sunset the crypto rewards program, citing regulatory concerns. This caused Moons’ price to plummet over 80% in October.
Keypoints
- Reddit admins will renounce the Moons contract, making the token fully decentralized
- Moons held in the Community Tank will be burned, reducing total supply to 83 million
- Moons will have a hard cap and no longer be inflationary, could become deflationary
- Reddit previously announced it would sunset its crypto rewards program citing regulations
- Price of Moons surged 130%+ on news of renouncing contract and supply reduction
However, Reddit is now fully relinquishing control of the Moons contract by the end of November. Moons will become immutable, with no new tokens creatable. Exchange listings will remain intact, allowing continued trading. Effectively, no entity including Reddit will control Moons anymore.
Additionally, all Moons held in the community reserve wallet will be burned. This reduces the total supply from around 126 million to 83 million. With no further Moons mintable, the token transitions from inflationary to having a hard cap. If tokens are burned in future, it could even become deflationary.
The r/cryptocurrency mod team says it will work with the community to develop a plan going forward. This includes determining distribution of the remaining community-held Moons. The mods also plan to build utilities like tipping bots using Moons.
When Reddit first announced it would discontinue its crypto rewards, Moons crashed over 80%. The news of full decentralization and supply reduction marks a reversal, with Moons surging as much as 149% in 24 hours. This suggests investors are more confident in Moons now that the community controls governance.
With a reduced capped supply and no more inflation, Moons embarks on a new decentralized journey. The market has reacted positively to this shift in governance.
The post To The Moon: Reddit Relinquishes Control of MOONs Sending Price Soaring 155% appeared first on Blockonomi.
