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 down on its service expansion.

Bluesky, the decentralized social network co-founded by Jack Dorsey, has reinforced its focus on user-centric design by announcing it “will not hyperfinancialize the social experience” through the launch of a token.

The statement comes alongside a $15 million funding round led by Blockchain Capital, a venture firm that previously backed Anchorage, BitGo, and Coinbase, among others. The funding was also supported by Alumni Ventures, True Ventures, SevenX, and others, the company revealed in a Thursday blog announcement on Oct. 24.

While Bluesky did not disclose its valuation, the company noted that the new capital would help boost its growth trajectory, which has seen its user base surpass 13 million since its transition to an open platform earlier this year. Despite being backed by a web3-centric firm, Bluesky reiterated its decision to refrain from launching a token.

“[…] Bluesky app and the AT Protocol do not use blockchains or cryptocurrency, and we will not hyperfinancialize the social experience (through tokens, crypto trading, NFTs, etc.)”

Bluesky

Under the funding agreement, general partner at Blockchain Capital Kinjal Shah will join Bluesky’s board, saying Shah “shares our vision for a social media ecosystem that empowers the people who use it, and we are glad to have her support as we invest in driving the adoption of decentralized social.”

Additionally, Bluesky will begin developing a subscription model for features like “higher quality video uploads or profile customizations like colors and avatar frames.” Bluesky emphasized it will “always be free to use,” claiming that its belief is based on conviction that “information and conversation should be easily accessible, not locked down.”

“We won’t uprank accounts simply because they’re subscribing to a paid tier.”

Bluesky

In addition to the funding, Bluesky plans to develop a subscription model for enhanced features such as higher-quality video uploads and profile customizations, while emphasizing that the platform will remain free for all users.

“We won’t uprank accounts simply because they’re subscribing to a paid tier.”

Bluesky

Despite its ambitious plans, Dorsey distanced himself from Bluesky, expressing disappointment in the platform’s alignment with conventional social media practices, particularly regarding moderation tools. His exit from the board has raised concerns that the social network is deviating from its core goal of decentralization, potentially mirroring the challenges Twitter encountered during his tenure.