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. 

This action effectively locks the system in place, reportedly halting any future development or changes.

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, 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. 

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 Broader Context

Farcaster, founded by Coinbase alumni Dan Romero and Varun Srinivasan, was designed to be a censorship-resistant and privacy-focused social network. Despite securing $150 million in May 2024, its user base has dwindled. 

Registrations fell from over 15,000 in February to just 545 by September. Daily active users (DAUs) also dropped from approximately 104,000 in early July to 60,000.

Similarly, Lens Protocol has seen a steep drop in user engagement. New user registrations fell from over 37,000 in February to just 142 by September, and DAUs decreased from a high of 42,281 in July to 8,368.

Many blockchain enthusiasts argue that the issue lies in the platforms' approach. They suggest that these decentralized social media platforms replicate existing Web2 functionalities without offering significant improvements in user experience or interface.

As one X user noted:

“The problem with Farcaster is that it’s trying to build what is already there but on blockchain without any UX/UI innovations. The first successful decentralized social app will be one of the current Web2 market leaders after they integrate blockchain technologies.”