Decentralized email service Dmail shuts down, token hits new low

Dmail Network, a decentralized email platform that has been in operation for five years, announced that it will phase out all services starting May 15. The team was working on building what it called “truly decentralized email,” according to the closing. advertisement.

The Dmail network team cited multiple factors behind their decision to shut down in a post published on Thursday. According to operators, decentralized infrastructure costs for bandwidth, storage and computing proved to be very high and occupied a significant portion of their budget, making sustainable business operations impossible. The team said these costs rose significantly as users grew.

The platform has also suffered from failed monetization attempts and token economics that never achieved product-market fit. The team said they tried many paid models and marketing funnels but were never able to find a sustainable scenario that users were willing to pay for. The project token never developed clear and large-scale usage scenarios and failed to create an effective economic model, according to operators.

Additional challenges included the departure of the core team, leaving the remaining members without the ability to maintain the high-cost infrastructure. Dmail Network has also experienced multiple rounds of funding failures and failed acquisition attempts.

Users must export their email content to other platforms before May 15, after which all nodes will stop working and emails will no longer be accessible.

The shutdown of the Dmail network reflects broader struggles across the decentralized social media sector. The team admitted that they “had already expected this outcome” after noticing the difficulties faced by other platforms.

The operators specifically referred to “shifts.” Experienced by the lensa decentralized social platform, and Friend.techAs indicators of the challenges facing Web3 communication projects. These platforms have faced similar difficulties in achieving sustainable user adoption and revenue models while competing against entrenched, centralized alternatives.

“If circumstances permit in the future, we hope to relaunch in a more mature manner,” they wrote. “But for now, we must bow to reality.” “If possible, we hope that the cryptocurrency market will pay more attention to products rather than just prices.”

In this regard, the DMAIL token on the BNB chain has fallen by approximately 70% over the past 24 hours, according to data from CoinGecko, where it recently traded at $0.000167 and reached a new low earlier on Friday. At its latest price, DMAIL is down almost 100% after peaking at $0.97 in early 2024, shortly after launch. Its current market value is less than $15,000.