Farcaster has introduced new moderation rules and restricted some user accounts following its October 15 acquisition by Balaji Srinivasans Network School, prompting complaints from members of the decentralized social network.
Summary
- Network School acquired Farcaster from Neynar on October 15, introducing new rules for platform users.
- Several Farcaster users reported account restrictions linked to older posts after the ownership change Thursday.
- Balaji Srinivasan said humans and artificial intelligence reviewed millions of posts before restricting repeat offenders.
- Users rejecting the new social contract retain read access and can move to alternative clients.
- Farcasters new Network Code sets penalties for misconduct and includes an appeals process for affected users.
Network School announced that it was taking over the platform from Neynar and introducing a new operating model called the Network State Protocol. The changes require users to accept a code of conduct to continue participating through Farcasters main application.
Several users reported receiving notifications that their accounts had been switched to read-only mode over earlier posts. The restrictions drew criticism from community members who questioned whether the new moderation policy was consistent with Farcasters decentralized structure.
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.
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Farcaster users report bans following Network School takeover
The new restrictions appeared shortly after Network School announced its acquisition on Thursday. Some users said they could no longer publish posts or interact normally through Farcasters main application, even though the activity cited in their notifications occurred before the takeover.
Among the complaints were reports involving a former Farcaster engineer and other longtime community members. Screenshots shared on social media showed accounts restricted to read-only access, although the full circumstances of individual cases have not been independently established.
Kunal Gandhi, a former India ecosystem lead at Eigen Labs, criticized the decision to penalize users for historical posts. Responding to reports of restricted accounts, he said he knew several affected members who had contributed to Farcasters development and online culture.
“I know most of these folks. They shaped Farcaster with their quirks and wit,” Gandhi wrote.
He described restricting established accounts over previous activity as “pretty silly” and questioned the decision against the platforms decentralized principles.
Woke up to the news that NS is acquiring @farcaster_xyz.
That was followed by tweets from tons of folks who got retroactively banned for their past posts.
I know most of these folks. They shaped Farcaster with their quirks and wit.
Obliterating accounts from the get-go for… pic.twitter.com/4p0LEXsK4w
— Kunal Gandhi (@kunalvg) October 16, 2026
The complaints followed Network School‘s introduction of a revised moderation system that examines behavior across a user’s posting history. Srinivasan acknowledged that some accounts could be restricted incorrectly and said affected users would have access to an appeals process.
According to the founder, the moderation review targeted a small group of users whose accounts had repeatedly been blocked or muted by others. He did not publish a verified total of suspended accounts, leaving the number of affected users unclear.
Balaji wants Farcaster to become the Singapore of social media
Explaining his plans, Srinivasan described the intended community as the “Singapore of social media,” where users would follow clear rules and cooperate with others who share an interest in technology and innovation.
The former Coinbase chief technology officer said the platform would prioritize what he called law and order. Its moderation policy is intended to discourage personal attacks, harassment, scams, and repeated hostile interactions between members.
“In the pre-Internet world, it was simply unheard of to run up to a stranger and start cursing at them,” Srinivasan said. He argued that similar standards should govern interactions on the platforms main application.
His announcement compared the moderation campaign with President Nayib Bukeles crime crackdown in El Salvador. Srinivasan argued that restricting a relatively small group of repeat offenders could reduce abusive behavior across the community, though he did not provide independent evidence establishing that outcome for Farcaster.
The founder confirmed that the review combined human decisions with AI analysis of millions of posts. He acknowledged the possibility of mistakes and said users could appeal if they believed their accounts had been restricted unfairly or wanted to change their conduct.
Network School introduced a written agreement called a social smart contract to formalize the rules. Users who accept the agreement can continue participating through the main application, while those who decline receive read-only access.
The accompanying Network Code divides misconduct into digital felonies, misdemeanors, and infractions. Depending on the offense, penalties can range from warnings and temporary suspensions to permanent restrictions.
Farcasters new rules leave the underlying protocol open
Although Network School now controls Farcasters main application, Srinivasan said the underlying protocol would remain open for other developers and users.
The 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.
As explained in earlier coverage of how Farcasters decentralized social network works, the protocol was designed to let users maintain control of their digital identities while interacting through different applications.
Srinivasan described the option to support, leave, or create alternative clients as a form of decentralized democracy. He said users could vote using their cryptocurrency wallets and eventually 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 Schools proposal. The 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. 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. It promises rewards for such behavior but has not disclosed a complete system determining how users will receive them.
Farcaster changes owners for the second time in 2026
Network Schools acquisition comes less than nine months after Neynar took control of Farcaster from original developer Merkle Manufactory in January.
Neynar initially planned to operate the protocol, application, and associated developer services. However, co-founder Rish Maheshwari announced in August that the company was seeking another team to manage the products.
The earlier search for a new Farcaster operator followed changes to the projects business strategy and declining protocol revenue during 2026. Neynar did not publicly identify revenue as the reason for seeking a replacement.
Before the first transfer, Farcaster co-founder Dan Romero said the network had 250,000 monthly active users and more than 100,000 funded wallets in December 2025. He confirmed that Merkle Manufactory planned to return the full $180 million raised from investors after Neynar took over.
The latest transaction includes Farcaster‘s main application, protocol code repositories, and related products. Neynar’s co-founders, Rish and Manan, are leaving their roles, while other employees are expected to join Network School. Financial terms of the transaction have not been disclosed.
The status of Clanker, the AI-powered token launch platform associated with Farcaster, remains unresolved following the transfer. Under Neynar, the project had established a Clanker ecosystem fund supporting creators and developers, funded partly through protocol fees.
Beyond the application changes, Network School intends to develop the online community through meetings and physical events. Srinivasan has proposed gatherings at the groups campus in Astana, Kazakhstan, with attendance potentially linked to users who accept the new social agreement.
The Kazakhstan plans follow regulatory difficulties in Malaysia, where authorities revoked Network Schools Forest City business license over alleged licensing and property-use violations. Srinivasan subsequently announced arrangements to establish operations in Kazakhstan.