Steem and Steem Dollars, the currencies used to power popular blogging and social networking site Steemit, saw modest gains yesterday despite the company announcing a significant reduction in its staff levels.
According to co-founder and Steemit CEO Ned Scott, 70% of the current workforce will leave so that a “structural reorganisation” can take place to allow the firm to weather current market conditions and balance the diminishing returns of the platform.
Long Term Viability
A number of other cost-cutting activities have also been implemented by Steemit Inc., the private company that runs the open-source steemit.com, which is a decentralised content management platform running on the Steem blockchain, and arguably the most successful blockchain application yet seen in terms of general adoption.
Scott still believes 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.”
As reported in the summer, Scott’s apparent reduction of his own personal holdings in Steem fuelled rumours already circulating about the long term viability of the platform and it appears the downsizing has been under consideration for sometime.
The CEO indicated that “Over the last many months, along with a hyper-talented team, I have gone back to the drawing board and figured out the remaining challenges that are acting as barriers in the way of the killer application and making great communities.”