{"id":887234,"date":"2026-01-23T21:13:35","date_gmt":"2026-01-24T03:13:35","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/23\/decentralized-social-network-farcaster-developer-to-return-180m-to-investors\/"},"modified":"2026-01-23T21:13:35","modified_gmt":"2026-01-24T03:13:35","slug":"decentralized-social-network-farcaster-developer-to-return-180m-to-investors","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/23\/decentralized-social-network-farcaster-developer-to-return-180m-to-investors\/","title":{"rendered":"Decentralized Social Network Farcaster Developer to Return $180M to Investors"},"content":{"rendered":"<div>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/04\/23090551\/ayan-150x150.jpg\" alt>\n                    <\/p>\n<p>Crypto Journalist<\/p>\n<div>\n<p>Amin Ayan<\/p>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/04\/23090551\/ayan-150x150.jpg\" alt>\n                <\/p>\n<div>\n<div>\n<p>Crypto Journalist<\/p>\n<p><span>Amin Ayan<\/span><span class><img decoding=\"async\" src=\"https:\/\/cryptonews.com\/wp-content\/themes\/cryptonews\/images\/verification.svg\" alt=\"Verified\"><\/span>\n                    <\/p>\n<\/p><\/div>\n<div>\n<p>Part of the Team Since<\/p>\n<p>Apr 2025<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p>About Author<\/p>\n<p>Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24\/7 Wall St. He has&#8230;<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<div>\n<p>Last updated:\u00a0<\/p>\n<p><time datetime=\"2026-01-23T07:42:35+00:00\">January 23, 2026<\/time>\n        <\/p>\n<\/p><\/div>\n<\/div>\n<p><img fetchpriority=\"high\" width=\"1200\" height=\"673\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2026\/01\/23073800\/1769153880-image-1769153863270_optimized.jpg\" alt=\"Decentralized Social Network Farcaster Developer to Return $180M to Investors\" decoding=\"async\"  ><\/p>\n<p>Merkle Manufactory, the company behind the crypto-oriented social media protocol Farcaster, plans to return $180 million in venture funding to investors.<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li><span>Merkle Manufactory plans to return $180 million in venture funding while Farcaster continues operating.<\/span><\/li>\n<li><span>Farcaster has been acquired by Neynar, which will take over development as the founding team steps back.<\/span><\/li>\n<li><span>The protocol is shifting away from a social-first model toward infrastructure and developer-focused use cases.<\/span><\/li>\n<\/ul>\n<\/div>\n<p>The decision <a href=\"https:\/\/x.com\/dwr\/status\/2014469533210456166\" target=\"_blank\">was disclosed late Thursday<\/a> by Merkle co-founder Dan Romero <a href=\"https:\/\/x.com\/dwr\/status\/2014469533210456166\" target=\"_blank\">in a post on X<\/a>, following speculation around the future of the project.<\/p>\n<p>Several investors, including former Coinbase executive Balaji Srinivasan, separately confirmed the plan to return the capital.<\/p>\n<h2><span id=\"h-romero-farcaster-not-shutting-down-as-merkle-plans-to-repay-180m\">Romero: Farcaster Not Shutting Down as Merkle Plans to Repay $180M<\/span><\/h2>\n<p>\u201cFarcaster is not shutting down,\u201d Romero wrote, pushing back on rumors surrounding the platform\u2019s status.<\/p>\n<p>He said the protocol remains operational, citing roughly 250,000 monthly active users in December and more than 100,000 funded wallets.<\/p>\n<p>Romero added that Merkle intends to repay the full amount raised over the past five years, saying the firm sought to be a responsible steward of investor capital.<\/p>\n<p>The announcement comes shortly after Farcaster was acquired by Neynar, a venture-backed startup that has long built infrastructure within the Farcaster ecosystem.<\/p>\n<p>Under the deal, Neynar will assume control of Farcaster\u2019s smart contracts, code repositories, mobile application, and Clanker, an AI-driven token launchpad.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"550\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>Given some rumors, wanted to post a few clarifications:<\/p>\n<p>Farcaster is not shutting down. The protocol works and will continue to work. There were 250,000 MAU in December and over 100,000 funded wallets. The acquirer, Neynar, is a venture-backed startup and plans to shift\u2026<\/p>\n<\/div>\n<p>\u2014 Dan Romero (@dwr) <a href=\"https:\/\/twitter.com\/dwr\/status\/2014469533210456166?ref_src=twsrc%5Etfw\" target=\"_blank\">January 22, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Romero and fellow co-founder Varun Srinivasan, along with parts of the Merkle team, will step away from day-to-day development.<\/p>\n<p>\u201cThis wasn\u2019t an easy decision,\u201d Romero wrote earlier this week. \u201cBut after five years, it\u2019s clear Farcaster needs a new approach and leadership to reach its full potential.\u201d<\/p>\n<p>Farcaster was launched with the ambition of decentralizing social media by allowing users to control their identities and data rather than relying on centralized platforms.<\/p>\n<p>The project drew significant attention in 2024 when it raised $150 million from major crypto venture firms, including Paradigm and Andreessen Horowitz\u2019s crypto arm.<\/p>\n<p>Despite early enthusiasm, Romero acknowledged that the platform struggled to achieve sustainable growth as a social-first product.<\/p>\n<p>In December, the team shifted its focus toward in-app wallets and trading features in an effort to drive engagement, signaling a strategic pivot away from competing directly with mainstream social networks.<\/p>\n<p>Neynar, which provides developer tools and APIs for applications built on Farcaster, said it plans to steer the protocol in a more builder-centric direction.<\/p>\n<p>The company is expected to roll out a new roadmap focused on infrastructure and developer adoption rather than consumer-facing social features.<\/p>\n<h2><span id=\"h-offline-web3-messaging-apps-gain-momentum\">Offline Web3 Messaging Apps Gain Momentum<\/span><\/h2>\n<p>The controversy around Farcaster comes as Web3-style social media and messaging tools are gaining traction as governments increasingly restrict internet access during periods of political unrest.<\/p>\n<p>Bitchat, an offline messaging app created by Twitter co-founder Jack Dorsey, <a href=\"https:\/\/cryptonews.com\/news\/dorseys-bitchat-explodes-in-madagascar-as-protesters-ditch-government-controlled-comms\/\">has emerged as a key communication channel<\/a> in countries facing election-related shutdowns.<\/p>\n<p>In Uganda, Bitchat <a href=\"https:\/\/cryptonews.com\/news\/bitchat-downloads-spike-in-uganda-as-government-prepares-internet-shutdown-for-election\/\">surged to the top of local app store<\/a> rankings after authorities cut internet and mobile services ahead of a disputed election.<\/p>\n<p>Downloads in the country have nearly quadrupled in recent months, with similar spikes reported in Iran as users seek ways to communicate during state-imposed blackouts.<\/p>\n<p>The app operates without internet or cellular connections, relying instead on Bluetooth mesh technology that allows messages to hop between nearby devices.<\/p>\n<p>\n                                    <a href=\"https:\/\/news.google.com\/publications\/CAAqKQgKIiNDQklTRkFnTWFoQUtEbU55ZVhCMGIyNWxkM011WTI5dEtBQVAB?ceid=US:en&#038;oc=3\" target=\"_blank\"><\/p>\n<p>                            <svg width=\"20\" height=\"16\" viewBox=\"0 0 20 16\" fill=\"none\">\n                            <path d=\"M19.6 5.36C19.6 5.48 19.6 5.66 19.54 5.78L17.2 12.8V5.6C17.2 4.94 16.66 4.4 16 4.4H12.82L12.52 3.8L11.86 2.36L15.34 3.32L18.58 4.16C19.18 4.28 19.6 4.82 19.6 5.36Z\" fill=\"#FF4131\" \/>\n                            <path d=\"M15.4 0.799997V3.26L11.92 2.3L11.74 1.88C11.44 1.28 10.72 0.979997 10.12 1.22L4.59998 3.38V0.799997C4.59998 0.499997 4.89998 0.199997 5.19998 0.199997H14.8C15.1 0.199997 15.4 0.499997 15.4 0.799997Z\" fill=\"#03A846\" \/>\n                            <path d=\"M12.82 4.4H4.00002C3.34002 4.4 2.80002 4.94 2.80002 5.6V11.42L0.520024 6.5C0.460024 6.26 0.400024 6.08 0.400024 5.9V5.84C0.400024 5.3 0.700024 4.82 1.24002 4.64L4.60002 3.32L10.06 1.22C10.72 0.979997 11.44 1.28 11.68 1.88L11.86 2.3L12.52 3.74L12.82 4.4Z\" fill=\"#FDBD04\" \/>\n                            <path d=\"M17.2 5.59999V14.6C17.2 15.26 16.66 15.8 16 15.8H4.00005C3.34005 15.8 2.80005 15.26 2.80005 14.6V5.59999C2.80005 4.93999 3.34005 4.39999 4.00005 4.39999H16C16.66 4.39999 17.2 4.93999 17.2 5.59999ZM9.40005 9.79999H7.00005V11H7.90005C7.60005 11.36 7.18005 11.6 6.70005 11.6C5.86005 11.6 5.20005 10.94 5.20005 10.1C5.20005 9.25999 5.86005 8.59999 6.70005 8.59999C7.12005 8.59999 7.48005 8.77999 7.78005 9.01999L8.62005 8.17999C8.14005 7.69999 7.48005 7.39999 6.70005 7.39999C5.20005 7.39999 4.00005 8.59999 4.00005 10.1C4.00005 11.6 5.20005 12.8 6.70005 12.8C7.90005 12.8 8.86005 12.08 9.22005 11C9.34005 10.7 9.40005 10.4 9.40005 10.1C9.40005 9.97999 9.40005 9.91999 9.40005 9.79999ZM14.8 7.39999H10.6V8.59999H14.8V7.39999ZM16 9.79999H10.6V11H16V9.79999ZM14.8 12.2H10.6V13.4H14.8V12.2Z\" fill=\"#0284FE\" \/>\n                            <\/svg><br \/>\n                                       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He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24\/7 Wall St. He has&#8230; Last updated:\u00a0 January 23, 2026 Merkle<\/p>\n","protected":false},"author":1,"featured_media":887235,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22585,700],"tags":[],"class_list":["post-887234","post","type-post","status-publish","format-standard","has-post-thumbnail","category-decentralized","category-social"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/887234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=887234"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/887234\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/887235"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=887234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=887234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=887234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}