Neynar, a startup focused on decentralized social media infrastructure and backed by Haun Ventures, is acquiring Farcaster, an Ethereum-based social media protocol, from Merkle Manufactory. Founders Dan Romero and Varun Srinivasan, both former Coinbase executives, have decided to pivot to developing a Farcaster-based wallet app, stepping back from their roles in the protocol's management. Romero noted that after 4.5 years of focusing on social media, they found it wasn't working and are now concentrating on wallet features. The acquisition includes the transfer of protocol contracts, code repositories, the Farcaster app, and Clanker, an AI-powered token launchpad. Farcaster was valued at $1 billion after a significant $150 million fundraising round in 2024, but it saw a drastic decline in earnings, reporting $1.84 million in Q4 2025, an 85% drop year-over-year. This transition comes amid wider shifts in the decentralized social media space, including another protocol, Lens, transferring ownership to Mask Network. Vitalik Buterin has also expressed a renewed commitment to supporting decentralized social channels, highlighting the ongoing challenges within this sector.