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Farcaster plans to return the full $180 million raised from venture investors.
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The protocol will continue operating after being acquired by Neynar.
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The move marks a rare full capital return in Web3.
Unusual Move in Web3
Farcaster plans to repay all $180 million raised from venture capital investors, according to co-founder Dan Romero.
The repayment follows Farcaster’s acquisition by Neynar, which plans to steer the protocol toward a more developer-focused future.
Protocol Will Continue
Romero emphasized that Farcaster is not shutting down. The protocol recorded around 250,000 monthly active users in December and has over 100,000 funded wallets, signaling continued usage despite the ownership change.
Several investors, including Balaji Srinivasan, publicly confirmed the repayment plan.
A Rare Outcome for Investors
Merkle Manufactory, the company behind Farcaster, was backed by major firms such as a16z Crypto and Paradigm. Farcaster was last valued at around $1 billion in 2024.
Returning all invested capital is rare in Web3, where acquisitions often involve token swaps or partial payouts. The decision stands out as a conservative and investor-friendly conclusion to a long development cycle.
