Following the Frame merger, Farcaster’s revenue rose to $600,000.

Farcaster, an Ethereum Layer 2 Optimism-based decentralized social protocol, saw its total revenue increase to $600,000.

The platform has been compared to Fred Tech, a decentralized social network, which initially attracted many users until it failed because of high fees.

The development of Farcaster by the integration of frames

Farcaster first caught the attention of users in December 2023 and has seen a modest increase in users paying for the platform's storage.

The second wave of attention occurred at the end of January and reached its peak at the beginning of February. During this time, there was a significant increase in user registrations, daily user activity and posts, primarily due to the January 29 launch of Frames, an in-app engagement tool.

Frames brought native monetization in the app. Users can provide NFT to another Farcaster user if they follow the original poster's account and repost their frame with this feature. So, the excitement of getting free NFTs and the possibility of getting an airdrop has brought many users from Discord and Twitter.

Unlike most social platforms, Farcaster charges its users ongoing storage fees to host data generated daily to generate revenue. This storage fee is $5 per year for 5,000 posts, 2,500 replies and 2,500 follows.

A portion of these fees are allocated to the platform and some are used to cover transaction fees and process credit card information. Customers who build on Farcaster can charge their fees. On Warpcast, the posting fee is $0.01 per post, although many reward schemes offer free posts.

While there are several reasons behind implementing pay-per-post, the main one is to prevent spamming activities to create a more authentic and meaningful interaction environment that appeals to users.

Farcaster Daily Active Users Skyrocket

According to data from Dune Analytics, the number of daily active users on the Farcaster network jumped from 5,000 to more than 172,000 on January 28.

Likewise, the number of new daily “casts” has increased, surpassing 2.9 million today, a significant jump from the 200,000 casts on January 28.

Meanwhile, the past few weeks have seen a massive increase in Farcaster users on the Coinbase-built Base network with on-chain transactions averaging 64%, according to Dune Analytics data. The move was triggered by lower network charges.

Additionally, the background of Farcaster co-founder Dan Romero, former vice president of Coinbase, and Jesse Pollack, one of the platform's most prominent users of the protocol exchange, may have pushed the change even further.