20 December 2014Reddit:
reddit recently raised a round of $50 million where the new investors agreed to give back 10% of the shares they bought to the community in the form of a “cryptocurrency” that was to be “backed” by reddit shares. For legal reasons, it is unlikely we will make the cryptocurrency exchangeable for actual shares, since we are not a public company, and therefore it would be illegal to give shares to millions of people. Howevever, we are working on a legal strategy and I’m sure the cryptocurrency will be exchangeable for something of value.
Also, we used the word “cryptocurrency” originally, but a better term is “digital asset”, since in many ways notes will not be like a currency at all. For instance, we are not planning on letting users buy gold with the cryptocurrency (although we haven’t eliminated that possibility).
The asset will be based on blockchain technology. As I have said in many previous reddit comments, we are not committing to any particular protocol at this time, but our preference is either for colored coins or sidechains depending on the winds of the bitcoin world in the coming months (the bitcoin world changes very, very fast, and we want to be certain we pick the best technology).
So, 1/6th of Reddit users will randomly be gifted a ‘digital asset’ that will probably be exchangeable for something of value at some point in the future. Maybe. Reddit tries out some weird stuff.