Pal.tech, a decentralized social media platform constructed on the Base blockchain, has sparked controversy by saying punitive measures in opposition to customers who change to forked or copycat variations of the app.
The official Pal.tech X account tweeted final week that customers migrating to imitation platforms would forfeit any reward factors they’d accrued. The controversial tweet has since been deleted.
TL;DR:
Pal.tech, a decentralized social media platform on Base blockchain, penalizes customers choosing forked or copycat variations.
Disqualified customers lose “reward factors,” amassed throughout beta testing, triggering speculations about their objective.
Monetary challenges coincide with plummeting revenues and lively customers, whereas OnlyFans inflow and Paradigm funding supply hope.
Decentralized Social Media: Gone Incorrect!?
Pal.tech has been airdropping reward factors to beta testers weekly, with plans to distribute 100 million factors over six months. Nevertheless, the staff has not clarified the utility of those factors, merely stating they “can have a particular objective” at launch.
Hypothesis suggests the factors could also be transformed into governance tokens when Pal.tech formally launches. Others consider there may very well be monetary advantages for customers holding massive quantities of factors.
The announcement comes as Pal.tech faces monetary difficulties. In keeping with DeFiLlama, the app’s each day revenues plummeted over 85% in a single week, from a peak of $840,000 on August 21 to only $112,400 on August 28.
Crypto.information reported Pal.tech’s each day transaction quantity has seen a 95% decline in the identical interval, from an all-time excessive of $16.88 million to $883,000.
Lively customers per hour additionally considerably dropped from over 4,700 to lower than 600. This led to Pal.tech falling out of the highest ten dApps by each day income. That is after beforehand surpassing leaders like Lido and Uniswap.
New person progress has additionally slowed regardless of a latest surge. Nevertheless, Pal.tech did see an inflow of OnlyFans accounts, elevating optimism about attracting a wider viewers.
Moreover, Paradigm’s latest seed funding in Pal.tech has fueled hypothesis of a possible native token airdrop.
Regardless of monetary struggles, Pal.tech stays dedicated to progress, as evidenced by strict measures to stop customers flocking to copycat platforms. The app’s skill to draw new audiences and ship worth to early adopters will decide if it could possibly bounce again.
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