Jesse Powell, co-founder and chairman of Kraken, criticized Reddit for not providing a "redemption path" for its terminated cryptocurrency community points. Powell disagrees with Reddit's mentioned regulatory issues and believes that closing this project may harm the rights of point holders. Reddit's decision did not affect its avatar collection (Polygon NFT series). Since its launch in July 2022, Reddit has released over 21 million avatar collections. (Decrypt) Earlier news stated that Reddit will close its blockchain-based community points program on November 8. Reddit stated that although the program had some opportunities, the resources required were too much to sustain. In addition, changes in the regulatory environment have exacerbated this dilemma. The team has launched or is actively developing some more easily adoptable products.

October 18th, according to TechCrunch reports, Reddit has decided to terminate its blockchain-based community points program that has been in existence for nearly three years. Tim Rathschmidt, Reddit's Director of Consumer and Product Communications, said, "Although we see some future opportunities for community points, the resources required are too high to sustain. In addition, the regulatory environment has increased efforts in this area."

Reddit is discontinuing its blockchain-based Community Points program, which rewarded creators and developers, due to the difficulty of scaling the program. The program was designed to incentivize better content and conversation by awarding users with Ethereum tokens that could be used for special features. However, scaling the program proved to be a challenge, and Reddit has since launched other community incentives that are easier to adopt and understand, such as the Contributor Program. The Community Points program will be phased out by early November, and beta participants will no longer see their points in their Vaults or earn points in their communities.