Reddcoin offers a service layer that can be used for “tipping” on social networks like Facebook, Reddit and Twitter. It initially used a Proof of Work consensus mechanism, but on August 2, 2014, it created and switched to Proof of Stake Velocity (PoSV), which encourages both ownership (i.e. stake) and activity (i.e. velocity). The Reddcoin ecosystem was designed to have a tipping platform, a verifiable online identity (Redd-ID) and a token wallet. Only portions of the tipping platform have been released and the development team promised in early 2017 that Redd-ID is coming “soon”. Even though its ICO occurred in January 2014, Reddcoin is still considered a model for “fair” ICOs distributions in that the ICO was publicly announced long before mining began, 95% of tokens were sold at the ICO, and team members did not receive any tokens unless they purchased tokens at the ICO.