Dorsey-incubated Bluesky opposes token launch following $15m Series A funding round

Decentralized social network Bluesky has secured millions in a Series A funding round led by Blockchain Capital to double its service expansion.

Bluesky, the decentralized social network co-founded by Jack Dorsey, has strengthened its focus on user-centered design by announcing that it will not “hyperfinance the social experience” by launching a token.

The announcement comes alongside a $15 million funding round led by Blockchain Capital, a venture firm that previously backed Anchorage, BitGo, and Coinbase. The fund is also backed by Alumni Ventures, True Ventures, SevenX and others, the company announced in its blog announcement on Thursday, October 24.

While Bluesky did not disclose its valuation, the company said the new capital will help accelerate its growth trajectory, which has seen its user base exceed 13 million since its transition to an open platform earlier this year. Despite being backed by a Web3-based firm, Bluesky reiterated its decision to refrain from issuing tokens.

“[…] The Bluesky app and the AT Protocol do not use blockchains or cryptocurrency, and we will not over-financialize the social experience (via tokens, crypto trading, NFTs, etc.).

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As part of the financing deal, Blockchain Capital general partner Kinjal Shah will join Bluesky’s board of directors, saying Shah “shares our vision of a social media ecosystem that empowers the people who use it, and we are pleased to have her support as we invest to move it forward.” Adopting a decentralized social approach.”

Additionally, Bluesky will begin developing a subscription model for features like “higher quality video uploads or profile customizations like colors and avatar frames.” Bluesky claimed that his belief was based on the belief that “information and conversation should not be locked away but should be easily accessible”, emphasizing that “it will always be free to use”.

“We will not rank accounts just because they subscribed to a paid tier.”

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While Bluesky plans to develop a subscription model for financing as well as advanced features such as higher quality video uploads and profile customization, it underlines that the platform will remain free for all users.

“We will not rank accounts just because they subscribed to a paid tier.”

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Despite its ambitious plans, Dorsey has distanced himself from Bluesky and expressed disappointment with the platform’s compatibility with traditional social media practices, especially when it comes to moderation tools. His departure from the board raised concerns that the social network was straying from its core goal of decentralization and potentially reflects the challenges Twitter faced during his tenure.