Reddit Plans To Give Stock To Users. Is That Cool?

Reddit
Reddit

Reddit is now planning to give away stock to active users. The company which raised $50mn this week has set aside 10% of the round for its active userbase.

“We have a crazy plan and what we’re going to do is create a crypto-currency that is backed by those shares. Then we’re going to distribute the currency to the community through some reasonably fair way that reflects the contributions of community. That is one of the more complex subproblems we have to figure out.” [Reddit CEO Yishan Wong/Via]

Ofcourse, the company is clear that Reddit Karma points aren’t tied to the stock as that will lead to gaming, but the bigger question is whether initiatives like these will create opportunistic communities, who will start expecting monetary compensation from the platform?

Wikipedia has survived so far because they aren’t commercial. But  it’s a chicken and egg situation for community platforms (not everybody is running a non-profit organization), who do have a noble intention of building active communities and yet, have monetization plans.

What’s your take? For sure, contributors need to be rewarded – but is $$ / stake the best possible way to reward loyalty?

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