Earlier today, Reddit posted to its blog and announced the “Reddit notes,” the name of the long-awaited Reddit cryptocurrency. Reddit recently closed a $50 million USD funding round led by Sam Altman, Marc Andreessen of Andreessen Horowitz, and Alfred Lin of Sequoia Capital. Soon thereafter, Reddit announced their plans to “share” 10% of the equity raised with the loyal users of Reddit, without whom the funds could not have been raised.
To help with their new cryptocurrency, Reddit posted a job ad for a “cryptocurrency engineer” and quickly hired BitPay developer Ryan Charles back in September. In his first official Reddit blog post, Reddit’s new cryptocurrency engineer hinted at potential uses that Reddit might have for a block chain, stating:
Bitcoin technology will ultimately become integral to reddit.
Initial Reddit Notes Distribution
Reddit Notes will not be given out for quite some time, as development seems to be in a conceptual stage. However, Reddit’s initial commitment to distribute their creation to users has remained strong. Last month, the Reddit community was asked (seriously) about what they thought the 10% should be used for. The post explained:
To celebrate all of you and your contributions, we plan to give away reddit notes in a random lottery. As of this point, it looks like we’re going to have approximately 950,000 reddit notes to divide among active user accounts. There aren’t as many reddit notes as there are accounts, so if you get one, lucky you! Eligible recipients of reddit notes will be determined based on activities before 9/30/14 (when we first announced this project), and we plan to give them away in the fall of 2015.
We’re still working out details on both the technological and legal aspects of the project, especially regarding how reddit notes will work within existing government regulations. We look forward to sharing that information with you early next year. If you have feedback or ideas for us, feel free to visit/r/redditnotes – and keep being awesome!
As former Reddit CEO Yishan commented in October:
Again, we want to emphasize that this plan is in its earliest stages right now and could totally fail (if it does, we will find another way to get the shares to the community somehow), but we are going to try it because… well, because we are reddit and we do these kinds of things.
Images from Shutterstock.