How I Turned ‘Free’ Reddit Moons Into $2,000 of Cryptocurrency

Final yr, Reddit introduced out its nascent cryptocurrency as an experiment throughout the r/Cryptocurrency subreddit. The cash, known as Moons (MOON), exist on the Ethereum testnet, which suggests—in concept—they haven’t any worth.

However the crypto neighborhood shortly obtained inventive and made a means for anybody to purchase and promote them in a decentralized style. And now, for the reason that value of Moons has grown considerably, 10 Moons will get you round $1.15. Which, to my shock, meant I might flip the 17,500 Moons I had gathered by being an energetic Redditor into $2,000.

However it wasn’t straightforward.

In July 2020, Reddit first launched the Moon tokens to the cryptocurrency subreddit. They had been designed to reward those that contributed to the neighborhood and an experiment with decentralized know-how. These with Moons can vote on what they’re distributed for (upvoting, commenting and so forth) and they’re handed out each month on a set schedule. They do have some utility worth on Reddit and might be exchanged for cash, that allow you to purchase badges, or used to pay for a ‘particular membership’ that allows you to do issues like including GIFs in feedback.

Reddit provides neighborhood factors for r/cryptocurrency and r/fortnite. Picture: Reddit.

When Moons first appeared, Decrypt reported on tips on how to flip Moons into crypto. At the moment, it was a three-step course of utilizing three instruments. It’s nonetheless the identical course of however sadly a few of these instruments not work so a few of it must be achieved manually.

The method can be costly. Because of rising Ethereum charges, today you’ll be able to count on to pay $40 or so to transform your Moons to DAI—plus $15 if you wish to then transfer the DAI round, plus any charges concerned with shifting Ethereum in case you don’t have already got it in your pockets. However you probably have a whole lot of Moons, it may very well be value it.

One caveat: This complete course of is experimental and dangerous. It’s straightforward to lose your cash doing this. So I don’t suggest it to the danger averse. Reddit additionally advises in opposition to it as a result of its dangerous to play with

A quick overview

The principle approach to flip MOON into DAI is by swapping the MOON onto the xDai blockchain—a sidechain operating subsequent to Ethereum that’s sooner and cheaper. Then, on the xDai chain, the xMOON tokens are swapped for xDAI tokens (additionally on the xDai chain). Lastly these xDAI tokens are become regular DAI on the Ethereum blockchain (the costly bit).

Reddit desires to create a decentralized utopia. Picture: Reddit.

What components did I want? Nicely I wanted sufficient mainnet ETH to pay for the massive transaction charges on the finish, a tiny quantity of xDAI to pay for some charges and a few testnet ETH to ‘pay’ for additional charges. I’ll clarify how I obtained every of those additional down.

With a view to do that, I had to make use of MetaMask for storing and interacting with the tokens at every stage. I additionally used MyEtherWallet to carry out the contract requires turning MOONs into xMOONs.

Step 1: Turning MOONS into XMOONS.

So the very first thing I did was ship my Reddit moons from my pockets throughout the app to my MetaMask pockets (alternatively you’ll be able to import your Reddit account into MetaMask however then you will have to fund that pockets with ETH).

That is pretty easy. Within the app, I made a transaction and despatched the MOONs to my Ethereum pockets (copied and pasted from MetaMask). The MOONs transferred shortly since they’re operating on the Ethereum testnet.

MetaMask is a Internet 3 pockets. Picture: MetaMask.

On MetaMask, nevertheless, the MOONs didn’t instantly seem. I had so as to add them to MetaMask. First I chosen the Rinkeby testnet, then I clicked “add tokens” and added the contract “0xDF82c9014F127243CE1305DFE54151647d74B27A.” (If this doesn’t present in full, see directions right here—however word that the remainder of the information is outdated). A bizarre quirk of MetaMask means I needed to click on “subsequent,” then “again” then add the variety of decimal locations, which is eighteen.

The MOONs appeared in my account. Subsequent, I wanted to show them into xMOONs on the xDai blockchain. That’s  the place the web sites not work that used to do the job for you. So as a substitute, I needed to manually name the contracts.

To do this, I wanted some testnet ETH. I used this facuet, which required me to make a Fb publish (though I like to recommend Twitter as a result of it’s simpler to get the hyperlink of a publish). Shortly thereafter, 3 shiny, new testnet ETH arrived in my pockets.

The tap offers out testnet ETH. Picture: Rinkeby faucet.

I then used this information to get my tokens onto the xDai blockchain. It took me by means of the precise steps I wanted to make use of MyEtherWallet to show MOONs into xMOONs. Although it appears difficult, it’s a reasonably easy course of. Simply comply with the recipe.

Ensure you’ve chosen the Rinkeby testnet as a result of that’s the place that is all going down. One other factor to remember is that you might want to add 18 decimal locations when including values in Wei. So to maneuver 20 Moons, you would want to write down 20000000000000000000 within the Worth and Quantity fields. Math is enjoyable!

Now I had some xMOONs. To see them in MetaMask, I wanted so as to add the xDai blockchain to MetaMask and add the XMOON tokens to it, too. There’s a easy information for including the xDai blockchain right here; including xMOON tokens was the identical process as earlier than (particulars might be discovered right here).

Exchanging XMOON tokens for XDAI

Now we come to the straightforward half: we do a easy commerce on the xDai blockchain from one token to a different. The one tough bit is that we’d like some xDAI to make the commerce.

I first purchased some DAI however then realized it was costly to show it into xDAI. As a substitute, I bummed some DAI by panhandling on Twitter. A sort stranger helped me out. He then advised me that one of the simplest ways to get xDAI was to both enter the 1Hive neighborhood and converse to individuals there, or use this faucet—$0.01 is ok, you don’t want a lot.

The HoneySwap decentralized change. Picture: HoneySwap.

DAI in hand, I used the HoneySwap change to swap the tokens. This can be a decentralized change that was cloned from Uniswap V1. Ensure you have the xDai blockchain chosen in MetaMask and also you’re good to go.

I entered what number of tokens I wanted to swap and chosen xDAI because the token to obtain. There was a small price in xMOONs (round 50 tokens, value $5, if I recall). After I tried doing all of the tokens without delay, the transaction failed so I swapped them in a number of batches.

Quickly, I had 2,100 xDAI in my MetaMask pockets.

Swapping XDAI for DAI

The third step was to show the xDAI tokens on the xDai blockchain into DAI tokens on the Ethereum mainnet. This isn’t a vital step (there are different methods to commerce xDAI tokens for mainnet tokens) nevertheless it’s simpler to commerce DAI on many huge exchanges.

I used the xDai bridge (which recommends utilizing Chrome and enabling pop ups) for this job, which was fairly easy: I put within the quantity of xDAI I wished to swap on the xDai chain for mainnet DAI. Then I clicked “Request.”

Swapping xDAI for DAI. Picture: xDai bridge.

A MetaMask pop up requested if I wished to pay $40 in transaction charges. Begrudgingly, I accepted, and set the transaction in movement. This can be a two-step course of, so after a second MetaMask popped up once more and I needed to verify the second half.

Shortly after the DAI arrived in my pockets. I had transformed Reddit MOONS for DAI.

From right here, it was doable to commerce the tokens for different cash (like ETH) inside MetaMask (which is pretty costly) or ship the DAI tokens to a centralized change to swap for different cash. Since sending DAI requires a smart-contract transaction, it’s a bit dearer than sending ETH (round $15-20 in the mean time) however you’ll be able to set the charges decrease in case you’re completely satisfied to attend longer.

Voila! Now I had $2,000 of DAI in my MetaMask pockets. Who stated Reddit was a waste of time?

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