Community Points allow members of Reddit communities to own a piece of their community, earn rewards for quality contributions, and unlock special features.
Read all about it at the above link. There's way too much to process here. This is going to be wild.
Its built on Ethereum, each community will have a token that runs on the arbitrum L2. Ethereum is one of the most trusted chain in existence, and doesn't burn the environment like Bitcoin.
Look at R/cryptocurrency MOONs which were the test bed for this, it's been in the making for years.