Elon Musk’s offer to take Twitter private for $54.20 per share, or approximately $43 billion in total, has sparked a flurry of interest on the social media platform. Only hours after the news broke, Justin Sun, founder of the Tron network, made an offer of $60 per share in an attempt to outbid Tesla’s CEO, claiming he would turn Twitter into a decentralised web3 platform.
In an attempt to outbid Elon Musk, Justin Sun stated that he would transform Twitter into a decentralised open-source framework and relocate it offshore, making it less US-centric through workforce decentralisation.
FTX CEO Sam Bankman-Fried (SBF) also responded to Musk’s tweet, describing what a decentralised Twitter might look like and stating that FTX would like to be a part of the project if there is enough demand for making Twitter on-chain.
SBF stated that once Twitter goes on-chain, everything will be encrypted; in the meantime, tweets will function similarly to DMs with a privacy setting enabled, with senders deciding who can access them.
SBF tweeted that there would be two types of monetization: 1) Twitter charging a small fraction of fees for each message and 2) the User Interface (UI) displaying advertisements to subsidise the network fee. He also proposed that each UI develop its own set of moderation policies, ensuring that no individuals or entities have control over the platform’s speech.
FTX CEO explained that because the social media would be on-chain, Twitter would naturally include NFTs, digital avatars, on-chain transactions, and Dogecoin on its platform.
However, SBF admitted that such a transformation would be difficult to complete. Only layer 1 base chains capable of scaling to hundreds of thousands of transaction processing systems (TPS) could process the amount of data on Twitter. Furthermore, low transaction fees are essential.
With these new features, SBF believes that a decentralised Twitter can still generate a yearly profit of around $300 million and will transform the platform into one that is democratic and financially transparent.
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