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Steemit will cut 70% of its staff

Steemit, one of the earliest distributed apps, announced it will cut 70% of its staff due to the poor state of the crypto market, increasing node maintenance costs and STEEM token price downfall. The remaining team will focus on decreasing company’s expenses.

One of the oldest distributed content platforms Steemit will soon downsize its staff by striking 70%. The company explained such a move by “the weakness of the cryptocurrency market, the fiat returns on our automated selling of STEEM diminishing, and the growing costs of running full Steem nodes”.

The remaining staff will focus on reducing server costs by shrinking the size of the Steemit blockchain and reducing the service’s dependence on Amazon AWS instances.

“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,” – Ned Scott, founder and CEO of Steemit, commented on the matter.

Steemit operates one of the oldest decentralized applications, which features a mechanism for rewarding content creators. The project’s token, STEEM, has suffered 96% price meltdown, as compared to its all-time high, and is currently trading at $0.39 per coin.

As reported last month, cryptocurrency exchange Coinbase started downsizing its staff as well.