FTX has struck a deal with Reddit to integrate FTX Pay, its crypto-to-fiat exchange platform, with Reddit and Arbitrum. It will allow users to pay gas fees on Reddit’s Community Points tokens with fiat. Community Points are actually blockchain-based Reddit tokens whereby users can divvy out rewards and interact with the social platform.
Moreover, Community Points allow subreddits to reward active members or make governance decisions. The transactions, like all layer-2 rollups, are settled on Ethereum. Reddit enlists the expansion-minded FTX to let users pay Ethereum’s transaction fees with fiat.
Amy Wu, the head of FTX Ventures, said users need ETH for gas fees to transact with their Community Points on-chain. FTX Pay empowers the users with the same. It should be noted that Community Points are only live in the r/cryptocurrency and r/fortnite subreddits despite Reddit having a waitlist. It airdrops points to active users in the same way as users receive Karma for the upvoted posts.