Reddit plans to monetise popular posts; gold awards to be priced between $1.99 and $49

Reddit has announced its plan to compensate its top contributors with actual cash for their popular posts. This initiative, set to begin in the United States, will enable Reddit users who receive the coveted "gold" awards from fellow users (who pay a fee for these awards) to share in the platform's revenue. These gold awards will vary in price, ranging from $1.99 to $49, with users potentially receiving up to half of the award cost.

Turning the Tide

This announcement marks a notable turnaround for Reddit following a wave of discontent in June, during which large parts of the platform became inaccessible in protest against its senior management. While most groups on the platform have since returned, some notable exceptions persist, including the end of a long-standing subreddit dedicated to transcribing images for the visually impaired.

How does Reddit work?

Reddit is a unique social media platform consisting of various subreddits, which are essentially communities where users gather to discuss shared interests. Unlike other platforms where users follow individual accounts, Reddit users subscribe to these subreddits, and posts from these communities appear in their feed.

The Evolution of Gold

Gold awards have been part of Reddit for a considerable time, initially serving as virtual rewards for highly appreciated posts or comments. Users could purchase gold for others, but it held no real-world value, with the fees contributing to the platform's maintenance. Over time, gold recipients enjoyed perks like an ad-free Reddit experience for a week, and later, a more costly platinum award granted a month of ad-free browsing.

Mixed Reactions

Reddit's latest move has stirred a variety of reactions within the platform's community. While some express concerns that it might negatively impact the platform's overall quality, others remain cautiously optimistic. According to social media expert Matt Navarra, rewarding valuable users is a necessary step for Reddit. However, he highlights the potential risk of incentivizing content creation with real money, which could influence the types of content that gain popularity on the platform.