Discord Launches ‘Orbs’ Ad Currency Before IPO
By Scharon Harding | Updated July 10, 2025
Summary
Discord is rolling out a new virtual currency, Orbs, to incentivize users to interact with in-platform ads. The move marks a significant shift from the company’s ad-free origins as it gears up for a potential IPO later this year.
How Orbs Work and What They Unlock
In a recent blog post, Peter Sellis, Discord’s SVP of Product, announced that a “small group” of global users can now earn Orbs by completing Play Quests. Originally launched in March 2024, Play Quests let users:
- Watch sponsored gaming streams or trailers via Video Quests, introduced in June 2025 with interactive 15–30 second ad spots.
- Share referral links that drive new users to watch or play sponsored titles.
- Accumulate Orbs and redeem them for in-app purchases—ranging from profile themes and animated emojis to Nitro credits (500 MB uploads, HD streaming, server boosts).
With Discord’s daily active user base exceeding 160 million (up 20% year-over-year), incentivizing ad engagement is key to bolstering ad revenue ahead of its anticipated IPO.
Technical Architecture of Orbs and Ad Delivery
Discord leverages a microservices architecture on AWS, using OpenRTB for real-time bidding and Kafka streams for event tracking. Each ad impression or click is logged in a distributed Cassandra cluster, then processed by serverless Lambda functions to credit Orbs within seconds. Video Quests employ HLS streaming and adaptive bitrate protocols to optimize playback across devices.
“Our platform needed a low-latency credits system,” explains Akira Tanaka, Lead Backend Engineer at Discord. “We built an Orbs ledger on DynamoDB with transactional writes, ensuring zero double-spend issues even at peak loads.”
Data Privacy and User Experience Considerations
Discord’s pivot to ads raises privacy questions. The firm states it anonymizes user-level data, adhering to GDPR and CCPA standards. However, privacy advocates caution that granular ad profiling—powered by Discord’s recent partnership with OpenAI for ad-targeting AI models—could erode trust.
“We’ve implemented strict data retention policies and opt-out controls,” Sellis said. “Orbs are purely reward tokens and do not carry personal identifiers beyond hashed user IDs.”
Market Implications and IPO Outlook
After years of relying on subscriptions (Nitro) and premium features, Discord’s introduction of Orbs signals a deeper commitment to ad monetization. A confidential S-1 filing with the SEC in May 2025—confirmed by Bloomberg—suggests Discord is weighing a valuation north of $15 billion.
- Ad revenue growth: +40% QoQ after Video Quests launch
- Projected break-even: Q4 2025, according to Morgan Stanley analysts
- Comparative benchmark: Reddit turned profitable five months post-IPO with a 60% surge in ad revenue (Oct 2024).
Reddit’s model offers a roadmap, but Discord’s heavy investment in real-time voice/video and gaming communities sets it apart. Post-IPO, we can expect more ad formats—possibly AR-driven interactive banners within 3D voice channels.
Advertiser Tools and Partnerships
Discord is also collaborating with brand measurement firm Kantar to offer advertisers detailed KPIs—awareness, ad recall, purchase intent—via a unified dashboard. Nicole Jones, Kantar’s Chief Commercial Lead, commented:
“Discord’s demographic—Gen Z and millennials—values authentic engagement over interruptive ads. Orbs bridge that gap by making ads a value-add for users.”
Looking Ahead
Sellis hinted at expanding Orbs use cases: exclusive access to beta features, co-branded game skins, and dynamic Nitro bundles. With an IPO on the horizon, Discord’s ad-driven Orbs economy could redefine how social platforms monetize without alienating communities.