There seems to be some confusion over what this terms of service change entails, with some people on the Discord suggesting that it essentially makes everything on Wintreath public domain, or that it basically surrenders property rights of content to Wintreath. That's quite untrue; the user retains copyright on anything they produce, and is essentially just giving Wintreath the right to display any content that has been submitted to the site. It's a common CYA measure for websites (such as YouTube, Instagram, Google Drive, Wordpress.com, etc.) to make sure they can do what they normally do without running the risk of getting sued.
Here's the lead reddit admin
explaining similar changes that were implemented to reddit user agreement in 2013:
Ah yes!
The key here is that when you post something to a website, we need the right to display that content. The act of displaying it constitutes "reproducing" your work, and many of the actions (thumbnailing, quoting for previews or summaries, etc) may constitute preparing derivative works.
You end up seeing this claim everywhere and it is packed with pretty intimidating legal terms so I want to parse it down. The individual components mean this:
• royalty-free: we don't have to pay you to display the post/comment that you posted on reddit.
• perpetual: the right to display what you posted doesn't disappear after some specified time.
• irrevocable: once you posted it, you can't just say "hey wait, no, you can't display that." (In practice though, we allow you to delete it, but in case we do not successfully delete it or remove it fast enough, we wouldn't want there to be legal liability associated with that)
• non-exclusive: THIS IS IMPORTANT - non-exclusive means that you retain the rights to what you posted, i.e. you can still publish it elsewhere, and you own the copyright. We are just claiming a license to display it in addition to your own rights. This is something that has come up a lot - people often wonder when we claim such a wordy and broad license to their contributions whether they still retain rights to it: you absolutely do. You can take your own stuff and make it into a book, or republish it on your website, or anything you want. We just retain a non-exclusive license to be able to display the content you wrote on reddit.
• unrestricted, worldwide: these rights aren't restricted to e.g. the United States, because anyone in the world might use reddit, so we need to be able to do that in any country.
• derivative works, copies, publicly display: as noted in another comment, thumbnails are derivative works, but e.g. we might make a shirt with some popular meme derived originally from a funny comment or something (e.g. "send photo").
• authorizing others to do so: we may need to pass the content through any number of service providers in the course of doing business. The biggest one is CDNs, who redistribute/cache our content through edge networks to servers closer to you in order to reduce latency and load on our origin servers.
(Do note that reddit's license is much broader than Wintreath's. While ours only gives the rights solely for the purposes of displaying and interacting with the content, reddit's allows them to use the content for any purpose, including commercial ones.)
That said, for those in the writing community, there are certainly concerns over losing first publication rights and such (though to be fair, if you store the content anywhere online, you run that risk). But otherwise, I see little cause for concern.