Friend(.)Tech, a Web3 social network known for allowing users to trade tokens for access to influential individuals' feeds, faced significant scrutiny after developers transferred control of its smart contracts to Ethereum’s null address.
The Revocation of Control
On September 8, the developers of Friend(.)Tech executed a function that transferred control of the platform's smart contracts to the Ethereum null address (0x000...000), effectively locking the system in place and preventing any future changes to fees or functionality. According to an announcement on X (formerly Twitter), this change does not affect the separate web client, which will continue to function as usual. However, the decision has generated significant confusion and concern among users.
Platform Performance and Market Reaction
Friend(.)Tech, built on Ethereum’s layer-2 Base, initially garnered significant attention for its innovative approach to monetizing content through tokenized shares or 'keys.' However, the platform struggled with various issues. Problems with the FRIEND token airdrop in May led to increased user dissatisfaction, and daily fees earned from the protocol have dropped below $1,000 since late July. Trading volume has also seen a substantial decline. The FRIEND token has plummeted nearly 52% to $0.067 in the past 24 hours. The token’s market cap, which reached $233.6 million within the first four days of its launch, has fallen to $909k. The total value locked (TVL) on Friend(.)Tech has decreased from an all-time high of $52 million to less than $3.5 million.
Confusion Over Future Developments
Friend(.)Tech had previously announced plans to develop its own blockchain, 'Friendchain,' adding another layer of uncertainty. However, this announcement was later deleted from the platform’s X account, further compounding the confusion. The revocation of control comes amid a broader trend of declining user engagement on decentralized social media platforms. Other platforms like Farcaster and Lens Protocol have also seen a sharp decline in user interest. Some blockchain enthusiasts argue that these platforms replicate existing Web2 functionalities without offering significant improvements in user experience or interface.
Friend(.)Tech’s decision to transfer control of its smart contracts to the Ethereum null address raises serious questions about the platform’s future and the viability of decentralized social networks. Are these platforms sustainable long-term, or do they require fundamental changes to attract and retain users?
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