Reddit Ends Avatar Creator Program, Updates NFT Royalties

Reddit Inc. announced the termination of its Avatar Creator Program by the end of September 2025, affecting on-chain NFTs primarily on Polygon and impacting platform features.

This move signals a shift in Reddit’s blockchain strategy, affecting creators and the NFT market on Polygon, where transaction volumes and user engagement could potentially decline.

Reddit’s NFT Shift: Creator Royalties and Feature Closure

Reddit’s decision to end its Avatar Creator Program marks a significant shift in its NFT strategy. Users retain basic usage rights of their avatars, but key functionalities like collection displays and in-app transfers will be removed. The Avatar Store will close on November 11, 2025. All secondary sales royalties will now fully benefit creators as per upcoming contract amendments, redirecting financial benefits directly to NFT originators. Until January 1, 2026, users can move their blockchain wallets externally, safeguarding their assets.

A notable comment from the community captures some of the sentiment: This move feels like a huge step back for NFT utility on Reddit; the excitement around collectible avatars is fading. No major public statements from Reddit’s executive team have been recorded to date.

This move feels like a huge step back for NFT utility on Reddit; the excitement around collectible avatars is fading.

Market Context and Blockchain Impact Analysis

Did you know? Reddit’s decision mirrors similar actions by Twitter and Meta, who also reduced NFT integrations, impacting broader user engagement and on-chain transaction activities.

According to CoinMarketCap, Polygon’s metrics show a complex market position with its Fully Diluted Market Cap at $2.18 billion and a 24-hour trading volume hitting $1.27 million, up by 144.94%. Recent price shifts reveal fluctuation trends: up 2.78% over 24 hours, yet down 56.86% over 90 days.

The Coincu research team highlights potential volatility continuing as Reddit users realign with new blockchain norms. This move might reset user interactions, with future financial or regulatory implications leaning on broader market responses. Tether’s expansion highlights the ongoing changes in the digital currency landscape.