Farcaster acquires new owner Network School, introduces 'social smart contract' for users
Farcaster changes hands again under Network School
Decentralized social network Farcaster has been acquired by Network School, an organization led by former Coinbase CTO Balaji Srinivasan. The platform changes hands for the second time this year after Neynar purchased it from original developer Merkle Manufactory in January 2026.
Financial terms of the deal were not disclosed. Neynar co-founder Rish said the company is transferring the Farcaster app, protocol repositories, and related products to Network School after evaluating several other offers.
New 'social smart contract' requires user agreement
Under the new model, Farcaster will be rebranded as the "Network State Protocol." An in-app announcement states the goal is to "build a network of opt-in digital societies which ultimately gets printed out in the physical world."
Users are now asked to accept or decline a "social smart contract" — essentially a set of rules governing behavior on the platform. Those who accept will receive an access NFT, a digital token stored on a blockchain that serves as proof of their agreement. A blockchain is a shared digital ledger that records transactions across many computers.
Users who decline will retain read-only access to the main app. Their keys, funds, followers, and post history will be transferred to another client application.
Rules, AI moderation, and bot prevention
The platform lists several behaviors as bannable offenses, referring to them as "digital felonies." These include hate speech, death threats, scams, repeatedly starting fights, stalking other users, and passing off AI-generated content as one's own.
The new app also plans to use AI moderation and will gradually require users to verify that they are human, in an effort to reduce bot activity.
Clanker's future remains uncertain
Neynar's January acquisition of Farcaster also included the token launchpad Clanker. Rish's announcement did not address Clanker's fate. However, GM Farcaster hosts Adrienne and NourishProf stated during a Thursday stream that Rish was considering "breaking Clanker apart and looking for a different acquirer."
Reports of retroactive bans emerge
Several users on X have reported being banned over posts they made months earlier, including content about Elon Musk, Flock cameras, and gay appreciation. The Block has not independently verified these bans.
What is confirmed
Network School has acquired Farcaster from Neynar. Neynar acquired Farcaster from Merkle Manufactory in January 2026. Financial terms have not been disclosed. Farcaster will rebrand as the Network State Protocol. Users must accept a social smart contract or receive read-only access. Human verification and AI moderation are planned.
What is still unclear
The fate of Clanker, the token launchpad, has not been formally announced. Reports of retroactive bans for old posts are unverified. The full details of the social smart contract and its enforcement remain to be seen.
Why this matters for decentralized social media
Farcaster's shift toward enforceable rules and human verification marks a notable change for a platform built on decentralized principles. The move to require users to opt into a "social smart contract" tests how much governance can be centralized in a system designed to be open.
What happens next
Users are currently being prompted to accept or decline the social smart contract. The details of Clanker's disposition and further governance changes are expected to unfold in the coming weeks.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.