TL;DR
- Neynar acquired the decentralized social media protocol Farcaster.
- The founders are stepping back to focus on a wallet application.
- This follows an 85% year-over-year decline in protocol revenue.
The decentralized social media infrastructure firm Neynar announced the acquisition of Farcaster. Farcaster is an Ethereum-based social media protocol. The parent company, Merkle Manufactory, is transferring ownership of the protocol. The original founders of Farcaster are stepping back to focus on developing a wallet application.
Dan Romero, co-founder of Farcaster, confirmed the transaction in a post. He indicated the transfer will include the protocol contracts, code repositories, the Farcaster app, and Clanker. Neynar will operate and maintain these assets going forward. Romero stated Neynar is the right team to assume leadership of the protocol.
A Transition Following a Founder-Led Pivot
Romero and his co-founder, Varun Srinivasan, announced a change in direction in December. After 4.5 years with a social-first focus, they decided to prioritize development of a Farcaster-based wallet. They explained the initial strategy did not work for them, while wallet development showed growth.
“We tried social-first for 4.5 years … It didn’t work for us,” Romero said at the time. “Wallet has been growing so we’re doubling down on that direction. That means new features and product positioning will be wallet-focused.”
Merkle Manufactory, the creating company, was founded in 2020 by both former Coinbase executives. The firm had backing from venture capital funds like a16z Crypto and Paradigm. Its protocol, Farcaster, reached a $1 billion valuation following a $150 million Series A round in 2024.
The acquiring company, Neynar, is backed by Haun Ventures
The startup has focused on infrastructure for decentralized social media and has a prior association with Farcaster. The firm will now maintain the protocol, operate the Farcaster clients, and manage Clanker. Clanker is an AI-powered token launchpad acquired by Farcaster late last year.
Romero acknowledged the decision was not easy, highlighting the value of the built community. He expressed that after five years, Farcaster needs a new approach and leadership to reach its full potential.
Financial reports from the fourth quarter of 2025 show the protocol generated $1.84 million in total earnings. This figure represents an 85% year-over-year decline. The context of this transition includes this recent financial performance. The acquisition represents a significant shift in the governance and future direction of one of the most recognized on-chain social media experiments.
