March 27, 2024
MOON Rises: Reddit's Token Soars Over 130% Amid Supply Cap Announcement
Latest Cryptocurrency News

MOON Rises: Reddit’s Token Soars Over 130% Amid Supply Cap Announcement

The crypto token associated with Reddit’s r/cryptocurrency community is known as MOON. It has experienced a remarkable surge of over 130% following a significant update by community moderators. The update outlines a “plan forward” for MOON that involves imposing a hard cap on the token’s supply.

At the time of reporting, the price of MOON is just under $0.13. Marking a remarkable 133% increase for the day, according to CoinGecko.

The r/cryptocurrency mod team disclosed in the update that “The Reddit admins will be renouncing the Moons contract,” which is expected to be finalized by the end of the month. Renouncing the contract means that no new MOON tokens can be created, and the token is set to become “completely decentralized” after the contract is sent to a burn address, where it will be beyond the control of Reddit or the mod team.

As part of this transformation, all Moons held in the Community Tank will be burned, effectively reducing the total supply of MOON to just over 83 million. This move will make the token no longer inflationary, and any future burning of MOON tokens will render it deflationary.

The mod team expressed its commitment to collaborating with the community to formulate a plan for MOON’s future. This includes the distribution of remaining Moons held in the community wallet and deciding whether to burn or distribute Moons generated from advertising banner rentals and AMAs conducted by the community.

Furthermore, the moderators announced their intention to continue developing bots and leveraging available APIs to enhance the utility of MOON. Plans include a flair bot displaying r/cryptocurrency subscribers’ moon totals and a tipping bot for users to send Moons to each other.

Reddit’s Community Points, are represented by ERC-20 tokens like MOON. They were initially minted on the Ethereum network and later migrated to the scaling network Arbitrum Nova.

In October, Reddit disclosed its decision to sunset the crypto-based rewards program due to resource constraints and the evolving regulatory environment. The announcement led to a sharp decline in MOON and r/FortniteBR’s BRICK prices, with MOON plummeting over 80% in a single day. Despite the recent surge, MOON is still down over 78% from its all-time high of nearly $0.58 in July 2023.

Image: Wallpapers.com

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