Network School announced on October 15 that it acquired Farcaster from Neynar, introducing a new operating model called the Network State Protocol. According to reports, the changes require users to accept a code of conduct to continue participating through Farcaster's main application. The acquisition marks the second ownership change in 2026, following Neynar's takeover from original developer Merkle Manufactory in January. Neynar co-founder Rish Maheshwari announced Thursday that Neynar is transferring the Farcaster app, protocol repositories and related products to Network School after considering several other offers. Rish stated that Farcaster needs a different operating model for the platform's next stage, with himself and fellow co-founder Manan moving on while other Neynar employees will join Network School to continue developing Farcaster. The January acquisition also included token launchpad Clanker, though Rish's announcement did not mention what will happen to Clanker, with GM Farcaster hosts Adrienne and NourishProf suggesting on a Thursday stream that Rish was considering breaking Clanker apart and seeking a different acquirer.
Several Farcaster users reported receiving notifications that their accounts had been switched to read-only mode over earlier posts after the ownership change. As reported, the restrictions drew criticism from community members who questioned whether the new moderation policy was consistent with Farcaster's decentralized structure. Kunal Gandhi, a former India ecosystem lead at Eigen Labs, criticized the decision to penalize users for historical posts, stating he knew several affected members who had contributed to Farcaster's development. Screenshots shared on social media showed accounts restricted to read-only access, with Gandhi describing the restriction as "pretty silly" and questioning the decision against the platform's decentralized principles. An in-app announcement explains that users who decline the social smart contract will receive read-only access through the main app, with their keys, funds, followers and post histories then moved to another client.
According to reports, Network School founder Balaji Srinivasan defended the changes, saying the platform needed stronger rules to create a community focused on cooperation, technology, and constructive discussions. He confirmed that humans and artificial intelligence had reviewed millions of posts to identify accounts repeatedly involved in disruptive behavior. The new moderation system examines behavior across a user's posting history, with Srinivasan acknowledging that some accounts could be restricted incorrectly and saying affected users would have access to an appeals process. The accompanying Network Code divides misconduct into digital felonies, misdemeanors, and infractions, with penalties ranging from warnings and temporary suspensions to permanent restrictions. The rules call bannable offenses "digital felonies," including hate speech, death threats, scams, repeatedly starting fights, stalking users and presenting AI-generated content as the user's own work.
Despite controlling Farcaster's main application, Srinivasan confirmed that the underlying protocol would remain open for other developers and users. As reported, this distinction allows independent applications to connect to the protocol without adopting every moderation decision made by Network School. Users who lose access to the main client retain their private keys, funds, follower relationships, and posting history. The founder described this option as a form of decentralized democracy, saying users could vote using their cryptocurrency wallets and potentially participate in physical gatherings organized around the community. In his October 15 post, he claimed that 92.9% of votes recorded at the time supported Network School's proposal, though this percentage represents a vote tally cited by Srinivasan, not independently established support among all Farcaster users.
Network School plans to introduce further moderation tools, including an open-weight AI model trained to apply its rules. According to reports, the project intends to warn users about potential violations before they publish posts, while retaining human review for cases requiring judgment. The code encourages constructive conduct, including teaching other members, sharing technical projects, and disagreeing respectfully, with rewards promised for such behavior. Beyond the application changes, Network School intends to develop the online community through meetings and physical events, with plans for gatherings at the group's campus in Astana, Kazakhstan. These Kazakhstan plans follow regulatory difficulties in Malaysia, where authorities revoked Network School's Forest City business license over alleged licensing and property-use violations.
