In an announcement today, Alexis Ohanian, Reddit co-founder, said he’s set to invest millions of dollars in building out a form of decentralized social media using the Solana blockchain.
During a fireside chat with Solana co-founder Raj Gokal first reported by The Block, Alexis Ohanian stated that “One of the reasons why I’m here is to announce — I have a venture fund called 776 — we’re earmarking $50 million to invest in the next wave of social, built on Solana.”
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In the course of the chat, the Reddit co-founder pointed out that the plan is to increase the fund to $100 million since the $50 million initially allocated wasn’t enough for the investment.
This is coming in just a day after Sam Bankman-Fried, FTX CEO stated that building social media on the blockchain could be absolutely huge.
During the discussion, Bankman-Fried claimed that decentralized social media could solve a lot of pain points. He pointed to pre-existing social media sites, which have massive userbases, and stated that integrations with these sites could help to scale decentralized finance (DeFi) to millions of more users.
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Reddit to Convert Karma Points to ERC-20 Tokens
In another development, the popular internet forum, Reddit, is also planning to start converting users’ karma points into ERC-20 tokens, with the hope of attracting 500 million crypto users worldwide.
In a series of tweets on 3rd November, Reddit engineer, Rahul, highlighted the efforts of the platform to improve the interaction of users through various crypto initiatives:
“How will we pull this off? Reddit has partnered with @OffchainLabs (@arbitrum) and created our own separate instance. Community points for 2 subreddits (~80,000 users) are already on Rinkeby Testnet on our Arbitrum network (separate to Arbitrum One).”
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Previously, Reddit has already used the Arbitrum solution to scale the community token system, but now Reddit is planning to transfer karma points into tokens. According to the website:
“Your Community Points exist on the blockchain, independently of Reddit, where they can only be controlled by you (just like Bitcoin (BTC) !).”
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