Reddit is getting rid of its Gold awards system

Costs matter a lot and not having any made the first post hard to understand.

Nobody is going to take a chance on a company that hasn't managed to reach that kind of growth after nearly 20 years when safe investments like CDs are paying 5%+. Long gone is the low interest rate environment where investing in places like Reddit was the only hope you had of seeing returns. The world has changed significantly in the last year or so.

Today, Reddit is clamouring at anything to try and turn profitability around in order to keep the lights on. The runway only lasts so long.

If that is all that drove them, why did they not dig random holes on the Reddit campus instead? I think you will find that there was a belief that these features would provide the missing value. It is likely fair to say that it failed, but such is life.

The socially owned telephone company in my neck of the woods, of which I and the rest of my community are members, once spent big to enter the cell phone market. It too failed to deliver on the necessary value and we eventually had to back away from offering the service. The operations manager has said it was the biggest mistake the organization has ever made. Being socially owned doesn't mean value will magically present itself. After all, beneath it all is still humans and all of their faults.

In a similar vein, the original Reddit, Usenet, may not be strictly socially owned but shares a lot in common with social ownership. It too has, for all intents and purposes, failed. The core product is there: Text, links, and images, but it seems that's not enough. Few are willing to give up anything for those things. They really don't hold much, if any, value. The humans that lie beneath to keep it all working want something in return.

And that something in return is what Reddit is, now desperately, trying to find. They took to try and find it, but one can only hold out on giving back for so long and the clock is ticking.

Again, this is not something of capitalism. People not wanting to keep giving to people who won't give back in return has been around since the dawn of mankind, long before capitalism was invented. The laggard who always sleeps all day, offering nothing to the community, while the rest of the tribe works tirelessly has never been welcome and no economic system can change that fundamental truth.

I imagine the government has access to a lot more runway. Government is ideally suited to hosting capital intensive projects for that reason. But the piper needs to be paid eventually. Government isn't magical. It still has to deliver value in return for the value it takes.

This is not just theoretical. In the real world, governments that have failed to deliver sufficient value in return have fallen. In fact, that has happened many times throughout the ages. Government is a business like any other, only special in that you become an owner by virtue of citizenship.

Government is just people. It can't take, take, take without giving back any more than you or I can. For the US government to be able to afford to host Reddit long-term, it needs to start providing value that Reddit Inc. has been unable to find. What do you think they could do differently to start to deliver value?

> The reasons it does not are cultural, not economic.

I am not sure they are separable. Culture defines the economy. I agree that our broad culture sees little value in Reddit, giving no reason to bring it under the government watch – or to exist as a private business for that matter (hence the scrambling to try and change that). It is true that advertisers see some value, but not sufficiently so.

Reddit really backed themselves in a corner with respect to advertisers. The other social media giants realized that they had to make commercial users part of their core offering. I can promote my commerce all day long on those services for free and they're happy to point their users in my direction. Paid advertising just makes it better. Try doing the same on Reddit. You will be quickly banned for posting spam. That introduces a lot of friction in getting advertisers in the door, and also makes the paid ads that do make it onto the platform strangely bolted on the side, not a smooth part of the experience.

> no, but framing all aspect of life as a quantifiable trade, is

No. Such framing very much predates the invention of capitalism. Capitalism only speaks to a separation of ownership and labour. Nothing in this discussion relates to that.