On September 8, Friend(.)Tech developers transferred control of Ethereum smart contracts to a null address, causing confusion and concern within the community.
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, no fees from either the smart contracts or the website will be directed to the Friend(.)Tech development team’s multisig wallet. The web client will continue to operate as usual, but the implementation of new features or updates is now highly unlikely.
Platform Issues 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. 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 token FRIEND has dropped nearly 52% to $0.067 in the past 24 hours. Its market cap has fallen from $233.6 million to $909k. Total value locked on Friend(.)Tech has decreased from an all-time high of $52 million in early October 2023 to less than $3.5 million according to DefiLlama.
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. Platforms like Farcaster and Lens Protocol have also seen a decline in user interest in recent months, with users expressing the need for better UX/UI innovations.
The situation with Friend(.)Tech reflects a broader trend in the decentralized social media market, where traditional approaches do not always meet user expectations.
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