Network School, led by Balaji Srinivasan, has acquired Farcaster from Neynar and immediately introduced a stricter moderation framework, triggering reports of account restrictions across the decentralized social network. The deal was announced on October 15, 2026, marking the second change of ownership for Farcaster in 2026 after Neynar took control from original developer Merkle Manufactory in January.
Under the new operating model, Farcaster is being renamed the Network State Protocol. Users must accept a social smart contract to continue posting through the main application; those who decline receive read-only access but retain their private keys, funds, followers and posting history. Network School said the underlying protocol will remain open, allowing alternative clients and independent developers to operate separately.
Shortly after the announcement, several users reported being switched to read-only mode because of older posts that allegedly violated the newly introduced Network Code. The code classifies violations as digital felonies, misdemeanors and infractions, with penalties ranging from warnings and temporary suspensions to permanent restrictions. Prohibited conduct includes hate speech, death threats, scams, stalking, repeated fighting, and passing off AI-generated content as one's own.
Kunal Gandhi, former India ecosystem lead at Eigen Labs, criticized the retroactive enforcement as inconsistent with decentralized social media principles. Srinivasan defended the policy, saying the platform would become the Singapore of social media, built for constructive, technology-focused discussion. He said humans and AI had reviewed millions of posts and targeted a small group of repeat offenders who had already been blocked or muted by many users.
Network School also said an appeals process is available, and it plans to introduce an open-weight AI moderation model that can warn users before they publish potentially violating content. The company intends to organize physical meetups and pop-up events, potentially including gatherings at its planned campus in Astana, Kazakhstan, after regulatory difficulties in Malaysia.
Financial terms of the acquisition were not disclosed. Neynar co-founders Rish and Manan are leaving their roles, while other Neynar employees are expected to join Network School. The status of Clanker, the AI-powered token launch platform associated with Farcaster, remains unresolved following the transfer. Farcaster had reported 250,000 monthly active users and more than 100,000 funded wallets in December 2025, according to co-founder Dan Romero.
