These awards have to be purchased which helps Reddit generate revenue and they give the user that has been awarded free access to a premium, ad free version of Reddit.
Reddit is now introducing a new kind of award, one that could very well change the way we interact with other people on the social media platform. These new awards are being called “Community Awards”, and the new feature basically allows subreddits to create awards of their own. These customized awards will be a variation of Reddit Gold and will allow subreddits to offer unique awards that would involve some kind of in joke and would help foster a kind of community spirit among other users of said subreddit.
It should be noted, though, that these community awards are more for decorative purposes rather than serving as functional rewards for a good post or something similar. They don’t serve the same purpose as the standard awards which all subreddits have access to, and they won’t give the recipient access to Reddit Premium.

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