DeSoc project Farcaster will concentrate on expanding its wallet service. Co-founder Dan Romero explained the decision as a result of the unsuccessful social media-focused strategy.
According to him, the approach emphasizing the social component did not meet expectations over the past four and a half years.
“We are doubling down on the wallet because it is showing growth. New features and product positioning will be centered around it,” wrote Romero.
He acknowledged that the team failed to find a sustainable growth model for their X counterpart. However, the previously launched integrated wallet is showing strong performance. According to the developers, over five years, this product has come closest to meeting the real needs of the audience.
Farcaster plans to integrate social options into the wallet based on the existing infrastructure. The expectation is that asset holders will eventually become participants in the protocol.
The community received the announcement with mixed reactions. Supporters called it a pragmatic path to scalability, while critics fear a shift in the project’s culture, turning it into a tool solely for traders.
The protocol operates on L2 networks of Ethereum, including Base. In the fourth quarter, Farcaster’s revenue amounted to $1.84 million, an 85% decrease compared to the same period last year.
Back in October 2024, Farcaster’s revenue declined by 96% from its February peak.