This is a repost of our April 10th announcement: https://t.me/loomannouncements/295
Basechain has been running for more than a year already, with over 30 hard forks and more than a thousand builds. Recently, we’ve been seeing a decline in validators and developers working on it, and the community has been asking about this trend and what our plan is for the future.
A year and a half ago, we started the Basechain onboarding phase. We have been providing technical support (to the extent of writing and debugging code for developers), small grants, and all of our staff’s attention — in hopes of onboarding as many developers and validators as possible to bootstrap the utilization. However, as we were approaching the one year mark, many developers and some validators asked us to provide them with additional funding in order for them to stay. In essence, we were having to outbid other infrastructure projects in this space via subsidies just to maintain the status quo.
Our original objective was to bootstrap growth, and the math was simple. We had the infrastructure capability of being 10x cheaper than Ethereum and 10x faster. If we could onboard enough dapps and games that could utilize the cheaper capacity, then we could make a solid case for Basechain. But that never materialized. Outside of a couple of dapps, the bulk of the transactions were created by our first party dapps — none of which were built to generate revenue to support the ongoing business. On top of this, Ethereum’s daily transaction count has also flatlined, casting doubt on our original hypothesis that the best method for growth was targeting dapp developers.
The macro picture has also changed, globally we are facing one of the worst economic downturns and an epidemic that has infected more than a million people. Our plan for the future has to take this into account, and we must pivot our products into a space where they can generate revenue to offset our expenses. There’s a tremendous amount of volatility in the world right now, but it’s also a chance to unseat some incumbent technology.
We can’t survive by giving away money. We are going to focus on our profitable spaces of enterprise blockchain for healthcare and government. We are going to keep building great tech — as we have from the beginning — but pivot away from games and dapp developers as a source of growth. Moving forward, we think building the token around a proprietary enterprise technology would be a more sustainable path. We believe most crypto companies will have to find more profitable product spaces. We are moving there as one of the first again, just as we were one of the first companies to have a scalable sidechain. We are super excited and motivated to be heading in this new direction.