A community-led initiative to decentralize Donuts

Hi r/ethtrader,

Given the recent developments with Subreddit Points Donuts the past few weeks, we had some thoughts we’d like to share.

First, we want to acknowledge all of the work u/shouldbdan (and those involved) put towards putting Donuts on the blockchain. It is a pretty novel idea, and we think it reflects the creativity of this community.

We started Subreddit Points experiment to reduce the dependence of online communities on centralized actors and make them self-sovereign — communities that exist on their own and have the tools to chart their own destiny.

We’ve spent some time unpacking recent events, and we have a few concerns:

  1. The bridge between Reddit and the blockchain is centrally controlled by a bot. This makes the bot exceedingly powerful.
  2. u/ProofOfDonuts and u/StoreOfDonuts own too many Points. This potentially allows whoever controls the accounts to influence governance unfairly.
  3. Reddit is a central source of truth for Donuts balances and new distributions. If the goal is to make Donuts decentralized, it doesn’t make a lot of sense for Reddit to control these functions.

It might be worth thinking about a more decentralized design. One idea u/carlslarson suggested is to create an Ethereum smart contract that replaces Reddit’s database as the source of truth for Donuts. Reddit would then just read the data from this smart contract and provide a friendly user interface. The contract would need to take over some of the functions Reddit does now, such as distributing new Donuts every week.

We are open to discuss this further and will support a community-led project like this.

P.S. At this early beta stage of the project, the goal is to fail fast and learn things. If you see a flaw in the design, don’t panic! We can always fix the flaws and move forward.