Steemit announced today that they are undergoing a structural reorganization which will result in laying off close to 70% of it’s workforce.
So, what’s going on here?
Steemit said the move is a result of the weakness of the cryptocurrency market. Recently, the fiat returns on the automated selling of its native cryptocurrency STEEM diminished, while the costs of running full Steem nodes increased. Steemit will now focus their efforts on reducing operating costs of the product.
We have conducted our first all-hands meeting and are prioritizing all the cost reduction solutions we can accomplish in the near term, including replacing steemd plugins with hivemind, pitchforking Steem to prune the chain state size from 160gb to 0gb, AWS usage projections, DevOps solutions, reduction of Staging and Testing nodes, and eliminating redundancies. – Ned (CEO of Steemit)
No this isn’t the end..
Steemit has an extremely active community and Ned himself does not believe that this is the end.
We still believe that Steem can be by far the best, and lowest cost, blockchain protocol for applications and that the improvements that will result from this new direction will make it far better for application sustainability. However, in order to ensure that we can continue to improve Steem, we need to first get costs under control to remain economically sustainable. There’s nothing that I want more now than to survive, to keep steemit.com operating, and keep the mission alive, to make great communities.
STEEM, which has lost 96% from its all-time-high, is currently the 47th largest cryptocurrency according to CoinMarketCap. It has long been lauded as one of the few working products supported by a cryptocurrency. The project’s troubles will surely call into question the current feasibility of running projects with real operating costs on top of networks/cost with highly volatile cryptocurrencies.