Friend.Tech, a Web3 social network known for allowing users to trade tokens for access to influential individuals' feeds, faced a major setback. On September 8, the platform's developers executed a function that transferred ownership of its smart contracts to Ethereum’s null address.
The Revocation of Control
Friend.Tech’s decision to revoke ownership of its smart contracts has generated significant confusion and concern within the community. The developers’ move ensures that no further modifications can be made to the platform’s fees or functionality. According to an announcement on X (formerly Twitter), no fees from either the smart contracts or the website will be directed to the Friend.Tech development team’s multisig wallet. This step was taken to “prevent any changes to their fees or functionality in the future.” The revocation means that while the web client at Friend.Tech will continue to operate as usual, the implementation of new features or updates is highly unlikely. The smart contracts are now locked, making any future adjustments to the system impossible.
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, despite its early success, the platform struggled with various issues. User dissatisfaction increased following problems with the FRIEND airdrop in May, and daily fees earned from the protocol have dropped below $1,000 since late July. Trading volume has also seen a substantial decline. The platform’s token, FRIEND, has experienced a dramatic decrease in value. It has fallen 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 plummeted to $909k. Additionally, the total value locked (TVL) on Friend.Tech has decreased from an all-time high of $52 million in early October 2023 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 about its future. 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. Friend.Tech, along with other platforms like Farcaster and Lens Protocol, once promised to revolutionize social interactions through blockchain technology. Yet, user interest in these platforms has sharply declined in recent months.
The situation with Friend.Tech serves as a significant example of the challenges and complexities associated with managing decentralized platforms. It will be interesting to see how other decentralized social networks adapt and evolve in the face of declining user activity.
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