Neynar Seeks New Owner for Farcaster Seven Months After Acquisition

Neynar has begun the process of finding a new team to operate Farcaster, a decentralized social protocol, according to co-founder Rish Mukherji. The company acquired Farcaster from Merkle Manufactory seven months prior, but recent developments indicate a strategic reassessment.

Since the acquisition, protocol fees have sharply declined from $35.43 million in the first quarter to just $376,740 so far in the third quarter, as reported by DefiLlama. This significant drop in revenue has prompted Neynar to reconsider its involvement.

In a statement, Mukherji revealed that Neynar plans to return most of its remaining balance sheet and disband its team associated with Farcaster. This decision marks a notable shift in the project's trajectory, suggesting that Neynar is stepping back from active management.

Farcaster remains a key project within the decentralized social ecosystem, and the search for new ownership could influence its development and adoption moving forward. The move underscores the volatility and evolving nature of blockchain-based social platforms and their funding models.