Network School acquires Farcaster and adds user contract

Balaji Srinivasan’s Network School acquired Farcaster from Neynar on Thursday, Oct. 15, taking over the app, protocol repositories and related products, according to The Block’s report. Neynar co-founder Rish said in his Farcaster announcement that the transfer followed a process that drew several proposals; the companies did not disclose financial terms.

Why did Neynar transfer Farcaster?

Rish said Farcaster needed a different operating model and that Network School had resources to fund it. He said most of Neynar’s team would continue building Farcaster under the new owner, while he, co-founder Manan and other team members would move on.

The Block reported that Neynar had acquired Farcaster in January from original developer Merkle Manufactory. The Network School deal is the platform’s second ownership change this year.

What does the social smart contract require?

An in-app notice renames Farcaster the “Network State Protocol” and asks users to accept a “social smart contract” covering the app’s rules, The Block reported. Users who accept receive an access NFT onchain.

The listed “digital felonies” include hate speech, death threats, scams, repeated fights, stalking and presenting AI-generated content as one’s own. The app also plans to require users to verify they are human to reduce bot activity, according to The Block.

What if users decline the agreement?

Users who decline can keep read-only access through the main app. The Block reported that their keys, funds, followers and post history will be moved to another client.

The arrangement ties full participation on Farcaster to acceptance of its new conduct rules, while users who decline retain a way to browse the network.

Sources

• The Block’s report — theblock.co
• his Farcaster announcement — farcaster.xyz