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They have been experimenting with this on /r/cryptocurrency for a long time. I was a moderator in that ecosystem and am good friends with some of the mods there. I've always been weary of moons, but I didn't think they would actually bring it to the whole platform.
This is definitely a paradigm shift that'll be an interesting dumpster fire to watch.
I work on Ethereum related things full time (and love the core parts of it), but I also, like you, think most crypto stuff is a slimy scam. Stuff like this is exactly why. It's a way for reddit to encourage bots to farm karma for real/fake money on garbage repost content.
I know crypto/blockchain in general is mostly hated in this community, and stuff like this absolutely does not help.
Not only garbage repost content but garbage reposts of other people's content.
Reddit posters as a majority are barely more than content thieves and reddit helped themselves by implementing their own internal image and video hosting keeping people inside their site - meaning people will take content they don't own, rehost it on reddit and completely deprive the creator of views and revenue and reddit gets to put their own ads in between all the stolen content.
The way DMCA takedown requests work mean they can hide behind the safe harbour clause and take the content down if they receive a report from the content owner or rights holders. By the time a creator or rights holder sees their content on the front page, file the takedown and reddit process it - the post has peaked anyway and those million views are already stolen.
Then the icing on the cake is when users give reddit money to buy gold awards to give a shitty little icon to the person who rehosted someone else's content they have zero rights to.
It's a massive network of content theft that reddit profits from and now this shit added into the mix is actually pretty disgusting.