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Friend.Tech will build its own blockchain, ending reliance on Base
With the introduction of its proprietary blockchain, Friendchain, and native token FRIEND, socialFi app Friend.Tech is moving away from its existing framework within the Ethereum ecosystem and the Basic level 2 solution.
The announcement of this proprietary crypto network has sparked considerable controversy and concern within the Friend.Tech community. Users are demanding explanations about the team’s decision to abandon Ethereum’s infrastructure in favor of its own blockchain.
Strategic partnerships and the utility of tokens
According to the announcement published on Official Friend.Tech X profile on June 8, the team will collaborate with infrastructure provider Conduit to build this new layer 1 blockchain called Friendchain. The FRIEND token, which was airdropped to the community in early May, will serve as a transferable gas token that will power this network.
While no concrete timeline was provided, the transition from Base to Friendchain is expected to occur within the first half of 2025. This uncertainty has sparked fears and doubts among Friend.Tech users, particularly regarding tokenization and trading of X profiles.
One of the main concerns raised is how Friendchain will tangibly add value to the decentralized Friend.Tech app in ways that could not be achieved on Base or Ethereum itself. Trader Dr Kojipup questioned the team directly about this during the announcement.
Others have pointed out that transaction fees on the FRIEND blockchain are expected to be higher than the low gas costs currently seen on Base, especially after Ethereum’s recent Dencun update, which significantly reduced layer 2 fees.
The only plausible justification seems to be that, by controlling its own blockchain, Friend.Tech could potentially launch several proprietary “appchains” whose transactions would be processed using the FRIEND token. This would provide the team with a revenue stream from collecting fees on the Friendchain network.
This initiative corresponds to previous statements from “Racer”, co-founder of Friend.Tech, regarding his ambition to move beyond layer 2 solutions like Base in favor of developing a self-contained ecosystem for their platform.
While the motivations behind Friendchain are being scrutinized, so far markets have reacted positively to the prospect of FRIEND gaining greater utility. In the first 4 hours after the announcement, the token’s price increased by 30% from $1,116 to $1,468 as traders likely bet on its potential as Friendchain’s gas token. It has since recovered and stabilized around $1,234.
However, FRIEND’s long-term price performance will be highly dependent on Friendchain’s ability to generate significant fee revenue to justify moving away from Ethereum’s mature infrastructure. Initial enthusiasm for Friend.Tech’s socialFi app peaked at over $1 million in commissions in just its second week, briefly outpacing major platforms like Uniswap. But interest had waned until the launch of the FRIEND token revived it in April 2024.
Future challenges and opportunities
Friend.Tech’s bold move to start its own Friendchain blockchain ventures in unfamiliar territory. The community is simultaneously fascinated by the possible benefits and at the same time wary of the risks and expenses associated with abandoning the well-established Ethereum ecosystem.
Venturing into a proprietary blockchain could make or break Friend.Tech’s position in the rapidly evolving socialFi realm. As the “Friendchain” migration approaches, users expect more in-depth information and justifications from the team.
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