Farcaster to Repay $180M to Investors Amid Pivot to 'Developer-Focused Direction'
Merkle Manufactory, the creator of the Farcaster decentralized social protocol, will return the full $180 million raised from investors as ownership transitions to infrastructure firm Neynar. Despite rumors, Farcaster will not shut down and will remain operational, with Neynar focusing on making the protocol more developer-centered. The acquisition includes a transfer of Farcaster’s protocol contracts, code, core app, and related projects to Neynar, which will now manage and maintain the platform. Farcaster had over 250,000 monthly active users in December and was last valued at $1 billion after its 2024 Series A. The move aligns with a broader trend in decentralized social media where operational control shifts to infrastructure-focused teams, aiming for greater reliability, scalability, and sustainability. Similarly, Lens Protocol has transitioned stewardship to Mask Network. Industry observers see these changes as signals of the sector’s maturation, prioritizing infrastructure and user experience over early decentralization ideals, marking a shift towards long-term viability for on-chain social platforms.
