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It's a token, not ETH. Basically it's a made up ledger that is stored in the Ethereum blockchain. The only way money comes into the picture is that moving tok
by tyrust 6y ago
It's a token, not ETH. Basically it's a made up ledger that is stored in the Ethereum blockchain. The only way money comes into the picture is that moving tokens around in the ledger costs Gas (think of Gas like mining fees for BTC), which is paid for with ETH. As the article says, Reddit is paying Gas costs for now.
- ComputerGuru 6y agoBut I don’t see how any of this scales. How does it go from “VCs covering the tab for now” to something else?
- tyrust 6y agoNeither do I, but does it have to? Like any business, Reddit has ways that it makes money and ways that it spends money. This could be considered valuable [0] enough to the site that they continue to cover the costs of running it. [0] - By driving more traffic, more engagement, better content, and/or other intangibles.