Bridging the gap between social media and cryptocurrency is no easy feat. Several projects are trying to do so, yet they all face their own struggles. In the case of Steemit, it would appear a major reorganization looms on the horizon. As such, nearly 70% of the company’s current employees will be laid off.
The Steemit Troubles Worsen
On paper, the concept of Steemit is quite innovative. It lets anyone publish content and potentially get rewarded for it. As submissions gain more votes, they can rise to the front page of that specific category. It is a bit similar to how Reddit works, but with an added incentive system on top. For content creators of the written format, this platform can be quite lucrative.
Unfortunately, the parent company is going through a rough time and new structural reorganization has forced the company to lay off a lot of people. Nearly 70% of the existing workforce is without a job this close to Christmas. Reducing overhead costs of the service has been an ongoing process for the Steemit team.
This further confirms running a social network is not all that easy. Other budget cuts include replacing plugins, pruning the chain state size, and eliminating redundancies. All of this is done to ensure the platform can continue to operate moving forward. Moreover, the team is confident more people will continue to use this blockchain protocol for applications. That seems to be the main focus now, rather than just the Steemit.com platform itself.
No Operational Changes Expected
For the end user, not too much will change. The online platform will remain operational as it has been to date. For the parent company, however, the focus does not lie with just the platform itself. Their desire to build a low-cost blockchain solution requires sacrifices. There is also the lessened return of fiat currency when selling the STEEM currency. Falling prices have affected this company in a major way.
For the blockchain industry, this is a potential warning sign. Experts have already predicted the use case of this technology outside of cryptocurrencies could come to an end in 2019. It seems Steemit is the first victim of this potential threat. Although companies restructure quite regularly, losing 70% of the workforce is a worrisome development.
Growing pains are to be expected for any blockchain company. Steemit is no exception in this regard. Despite hosting the platform-driven SteemFest, the excitement regarding this online service has seemingly hit a low point. Letting people go is a cost-cutting measure and an understandable one. Even so, it seems platform users are not sure what to expect in the future.
What do you think of Steemit’s recent downsizing? Can the platform continue to grow despite recent setbacks? Let us know in the comments below.
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