When Reddit created its NFT marketplace last July, it announced customizable avatars that would be available for purchase.
The social news aggregation and content rating site called them "blockchain-backed Collectible Avatars," and they were made available on the subreddit r/CollectibleAvatars. Created by independent artists who would receive a piece of the profits, the avatars quickly became popular.
The social network initially released 90 designs and gave users that purchased them licensing rights to use the avatars on and off Reddit.
It wasn't Reddit's first flirtation with NFTs. In January, the company tried out an innovation that allowed users to set any Ethereum-based NFT as a profile picture. This was shortly after Twitter had launched a similar feature.
Reddit had teamed up with Polygon, a blockchain compatible with Ethereum, to mint the avatars. Users would be required to store and manage these in the Reddit Vault, a digital wallet that corresponds to a public blockchain address.
"In the future, we see blockchain as one way to bring more empowerment and independence to communities on Reddit," wrote the company in a statement in July. "Reddit has always been a model for what decentralization could look like online; our communities are self-built and run, and as part of our mission to better empower our communities, we are exploring tools to help them be even more self-sustaining and self-governed."
Wallet Use Immediately Skyrockets
Since the Reddit NFT marketplace was launched in July, the number of users of Reddit Vault Wallets has grown at a remarkable pace. Before the new avatars were made available, some half a million wallets had been opened.
By October, the number stood at three million. So about 2.5 million wallets were snatched up in the marketplace's first three months of availability.
Reddit is estimated to have 50 million daily active users and the company says it grossed more than $350 million last year. The enthusiasm for avatar NFTs and the fact they are already monetized seems sure to boost revenue for 2022.
"There has been a lot of positive feedback about how the Reddit airdrop is going. And I noticed many people are confused on how to go about them. It works perfectly and smoothly," writes user @hav3rs on Twitter. The post has a number of followups that explain the process of setting up the NFT Avatars.
More About Reddit Vaults
A Vault is a digital wallet that is a vehicle for helping users store and manage blockchain-based digital goods, such as Reddit's Collectible Avatars.
The following are a few instructions from the Reddit Website on setting one up:
- You will be prompted to create a Vault the first time you use a blockchain-powered feature on Reddit, such as purchasing (or earning) a Collectible Avatar. Simply follow the instructions to create and secure your Vault.
- When your Vault is created, you will receive a public address and will need to secure your Vault. The public address is your address on Ethereum-compatible blockchains, where your Collectible Avatars are stored and that only you control.
- To secure your Vault, you’ll need to create a new password for it. You must remember your Vault password or know your recovery phrase. If you lose them, Reddit cannot help you recover your Vault.
