Kickstarter’s community helped steer it away from blockchain technology

Kickstarter shocked its customers in December 2021 when it announced unilaterally that it was transitioning to the blockchain. What followed was sharp and swift outcry from its community, a small but significant exodus of high-profile creators to competing platforms, and a $33 million (12.4%) decline in revenue from tabletop projects — a category that historically accounts for roughly a third of the crowdfunding giant’s income from backers. The company has since softened its stance, confirming for Polygon in an email on Thursday that it is “not committed to moving Kickstarter to the blockchain.”

“As we’ve shared with our community in previous blog posts, we’re exploring the opportunities that are in blockchain to alleviate some of the challenges that we face as a centralized crowdfunding company,” said a Kickstarter spokeswoman in a written statement to Polygon. “However, we’re not committed to moving Kickstarter to the blockchain or doing anything specific there. We are open to exploration and experimentation but want to do it in a way that feels tested, collaborative with our community and considerate of the experience they want from Kickstarter.”

Thursday’s statement follows a news post on June 22 that brought to a close Kickstarter’s inaugural Community Advisory Council. The council was announced in March 2022, just days before to the company’s previous CEO Aziz Hasan announced he would step down. Kickstarter expressed its gratitude to the members of the Council, chosen from the company’s community, for serving a term lasting one year. It also said that because of their feedback the company has shifted its focus from blockchain tech to “the core business and needs of our creative community.”

Here’s an excerpt from that news post:

Council Members frequently discussed feedback about how Kickstarter is perceived in the global market and their approach to new technologies. Many members stressed the importance of fully accepting our leadership position in the crowdfund space. We were encouraged to leverage our position as an industry leader in order for us build awareness and trust. It was important to have this viewpoint to develop a policy on AI, because our community is relying on us as champions of initiatives to drive forward the industry. Moreover, the Council’s insights have helped us reframe our focus on the core business and provided us with invaluable perspective (ahem, tough feedback) on R&D efforts with protocol technology.

Participants in the council came from all across Kickstarter’s community of creators, and included Ivan Askwith (film and television), Annette Azan (fashion), Ellia Bisker (music), Stefanie Black (pop culture), Kat Calamia (comics), Jose Cardona (engineering), Thomas Negovan (publishing, art, and music), Tony Patrick (art), Philip Reed (gaming), George Rohac (marketing), Philomena Schwab (gaming), and Philip Winter (engineering).

Kickstarter added additional clarity on the council’s impact in its statement to Polygon on Thursday.

“Where we are focused and deeply committed […] is on our core business and making Kickstarter better,” said the spokeswoman. “This is why we’ve prioritized finding ways to give creators access to the pledge management and digital marketing tools they need to be successful during and after their campaign period.

“The creation of the Community Advisory Council was actually born out of the feedback we received about the [blockchain] protocol,” they continued. “We saw a need to create another surface for feedback and conversation with our community so that they could be involved in our direction and our decision making — not just about the protocol but about all the topics that are top of mind for us and our community. We hope to continue this dialogue with our second cohort of the council this fall.”

So successful were the council’s proceedings that Kickstarter has announced the formation of a second Community Advisory Council. The deadline for applications is July 18. Each member will receive a $5,000 honorarium.