Some big news for Bluesky this week, as they raise $15M in their series A. Another new option to import your old tweets into Bluesky, and more.
Bluesky announces series A
Bluesky has announced their series A funding round, raising $15M, using the announcement to give a first look at some of their monetisation plans as well. The series A funding round is lead by Venture Capital firm Blockchain Capital. In summer 2023 Bluesky had an $8M seed round, and various investors of the seed round also returned for the series A. Kinjal Shah, a Partner at Blockchain Capital, will join the board of Bluesky.
The seed round already had investors from the crypto world, but this drew much more attention with the series A, as the headline of Blockchain Capital as a lead investor made the connection loud and clear. Bluesky is aware of the negative connotations that many people have regarding blockchains and crypto, explicitly stating that “the 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 also announced two avenues they will start to explore for monetisation; a subscription model and payment processing. For the subscription model Bluesky will explore various additional features that do not touch on the core experience, such as higher quality video uploads, or profile customisations. Bluesky will also start working on payment services to support creators. Not much information is known yet on this, and Bluesky says they will share more information as it becomes available.
Kinjal Shah wrote the investment thesis for Blockchain Capital, which gives good insight in the vision of what Blockchain Capital hopes to get out of the investment. She writes: “With this investment, we’re investing in more than a product but rather a vision of what social infrastructure could be. A future where users own their identity and data, developers can innovate freely, and networks are as diverse as we are.” The reason for Blockchain Capital to invest into a social infrastructure is the new opportunities that an open developer ecosystem brings for (other) developers to build new products, which is also stated here by Bluesky developer Why.
On Enshittification
A common response to the news of Bluesky’s series A being lead by a VC firm called Blockchain Capital is that “the enshittification has started”. This response was dominant on the fediverse, and less so but still present on Bluesky. It’s been such a common response that I think it deserves a closer look at ‘enshittification’ and how it relates to Bluesky taking money from a blockchain VC firm. The meaning of the term enshittification has shifted over time, and both meanings provide an interesting lens to look at the news.
When Cory Doctorow coined the term enshittification in 2022, he used it to describe a process of platform decay. A platforms subsidises growth by operating at a loss, and places themselves in between the suppliers and customers on a two-sided marketplace. Once suppliers and customers are locked in on the platform and cannot easily leave, the enshittification cycle happens: the platform uses their control of the marketplace to take an ever increasing part of the value while while making the experience on the platform worse, for both suppliers and consumers.
What is interesting here is that in earlier interviews, Jay Graber has mentioned the idea of building marketplaces on Bluesky as a way to make money. If enshittification is used to describe platform decay, it stands out that a marketplace is not present in the Series A announcement as a way for Bluesky to monetise. For a platform to become enshittified in this meaning of platform decay, a platform needs to have exclusive control of a marketplace on the platform. However, Bluesky is currently not taking the direction of a marketplace for monetisation, instead opting for subscriptions and payment processing. This is still open to change at a later point, as Graber has expressed interest in it before.
Doctorow also mentions two principles to combat platform enshittification. Platforms should be interoperable, allowing users to switch to a different provider. Users should also have the ability to control the content they see, and not be dependent on an opaque algorithm owned by the platform. As both of these principles are deeply embedded in the design of ATProto, Bluesky is an interesting case study if the principles that Doctorow mentioned are indeed good enough to stave off enshittification.
The meaning of the term enshittification has drifted and expanded over time. Enshittification is now commonly used to refer to any business practice that makes the company or product, well, shit. There is a fairly widespread negative attitude towards both venture capital as well as blockchains and crypto. People perceive that these systems have not brought benefits they promised, and enriched a small elite instead, all the while degrading the experience of using the internet. This is not a newsletter to deconstruct blockchains or VC (I’m sure you can find your own sources for that), but I do want to point out that public perception of both venture capital and blockchains matter here. Bluesky is in an active growth phase, and part of the sales pitch to get people to join the network is that Bluesky is a ‘better’ place, for various interpretations of ‘better’.
Getting people to join Bluesky while also being associated with technologies and organisations that many people perceive as ‘not better’ is much harder. People want to join a new network because they hope that the new network is a better experience for them. Judging from the outside if a network is a suitable place is hard, so people tend to fall back to simple heuristics to determine if a network is a good place for them. BlockChain Capital might provide valuable support to Bluesky, but this hard to see as an outsider that is considering joining Bluesky. Instead, it is more likely that they will fall back on their preexisting opinions about startups that take VC money or affiliated with blockchains.
The News
Porto is a new free tool that allows you to import your Twitter archive into Bluesky. The tool asks you to download your tweets from X as an archive, and upload the folder with your archive into the tool, via a browser extension.
Bridgy Fed, the bridge between ActivityPub and ATproto has gotten some updates, with the main new feature is that you can now set custom domain handles on Bluesky for fediverse accounts that get bridged into Bluesky. This brings the interoperability between the networks closer to native accounts, and makes having a bridged account more attractive. As such, you can now follow my fediverse account on Bluesky at @fediversereport.com.
Last week I wrote that the “new wave has a higher retention rate than other waves”. Another week later and this effect still holds.
ProtoScript is a tool that lets you publish Javascript code directly to your PDS, and then view and execute code from any user directly in your browser. Conceptually it is similar to ATFile, which lets you store arbitrary files on your PDS, but this time with Javascript code instead. Both ProtoScript and ATFile are exploring the idea that the PDS is a website, and it seems like there is still a lot of design space left to explore here.
The ATProto Tech Talks is back, with a new event November 7th. This event will feature various ways people build blogs on ATProto, including by Bluesky developers Samuel and Hailey. Smoke Signal event to register is available here.
Tracking how the space of labelers for self-identification is evolving:
- The Games Industry Labeler now is now automated via DMs, where a chat interface walks a user through setting their labels.
- The permissionless nature of ATProto allows people to backdate posts. This feature allows people to import their Twitter archive to the original date of posting, but can also create confusion. The Backdated Labeler labels posts that have a different timestamp than the time they first become visible on the network.
The Links
- Some (Slightly Biased) Thoughts On The State Of Decentralized Social Media – Mike Masnick.
- Ucho-ten is a new Bluesky client (iOS and Android) with a focus on a clean and quiet interface, that does not show engagement numbers.
- ‘What is a PDS, anyways?’
- A Bluesky meetup in Fukuoka, Japan, on 2024-11-16, following earlier successful meetups in Kyoto and Tokyo.
- A visualisation of how the algorithm for ATProto-powered link-aggregator Frontpage works.
- Building your own feed that sorts posts by your mutuals by trending.
And some more links that cater towards developers:
- ‘React Native, and “the native feel’ – Bluesky developer Samuel.
- A tool to see which browser or mobile OS a Bluesky user uses.
- Post to Bluesky directly from the Command Line Interface.
- PDSIs is a tool to browse all the different PDSes.
- Tracking the rate at which all the different apps on ATProto get used.
- Parsing PDS Logs With OpenTelemetry.
That’s all for this week, thanks for reading! You can subscribe to my newsletter to receive the weekly updates directly in your inbox below, and follow this blog @fediversereport.com and my personal account @laurenshof.online.