Will Apple's Controversial Guidelines Stifle the Growth of Crypto-Based Social Media?

In an unexpected turn of events, #Apple has decided to remove the decentralized social platform #Damus from its App Store. The cause? Damus' unique Bitcoin tipping feature, or "zaps" as it's known among users.⚡

But what's behind this tussle, and why does it matter? Let's delve into the fine print.

The Backstory

Heralded as a rival to Twitter, Damus is an innovative application built on the Nostr decentralized social platform. Interestingly, Nostr has been backed by none other than Twitter's own Jack Dorsey.

The Damus application took the social media space by storm with its "zaps" feature. This allows users to tip their favorite posts using #bitcoin . But while this feature has been a hit with users, it hasn't won over everyone—specifically, the team behind Apple's App Store.

Apple Vs. Damus: The Bitcoin Tipping Dilemma

Apple's App Store review process raised an eyebrow at the "zaps" feature, perceiving these Bitcoin tips as in-app purchases of digital content. According to Apple's policy, such purchases should only be conducted via Apple's in-app purchase system.

The situation culminated when Apple gave Damus a two-week notice to remove this feature, citing a violation of Guideline 3.1.1 - business payments. In a bid to uphold its unique selling point, Damus replied to Apple's concerns by explaining that no in-app content was unlocked by providing a tip. However, their defense fell on deaf ears.

source: nostr

Understanding Apple's Stance

Apple's stern stand on the issue has sparked controversy and raised questions about its guidelines. Over the years, these guidelines have often been criticized, especially when it comes to discussions about cryptocurrency. It's worth noting that Apple wants to maintain control over transactions on its platform to the extent legally permissible, and Bitcoin tipping seemingly undermines that control.

While Damus argues that no content is being unlocked via a tip, which indeed seems to be the case, the crux of the issue lies elsewhere. Apple is presumably more concerned about transactions, including Bitcoin tips, that could be regulated via in-app purchases.

The Road Ahead for Damus

So what's next for Damus?

It is likely that Damus could adapt its tipping feature to work through in-app purchased coins, which could then be converted to currency. But the volatile nature of Bitcoin adds a layer of complexity that makes such a simple exchange challenging.

Barring any unexpected developments, Damus is scheduled for removal from the App Store on June 27. The outcome remains uncertain, as either side may yield, or Apple might craft a new guideline that more specifically categorizes tipping as an in-app purchase.

Conclusion

The Damus vs. Apple saga is a perfect example of how the intersection of #cryptocurrency and app store policies can lead to unexpected challenges. As the world of technology continues to evolve, situations like this will likely become more common, prompting a need for more nuanced and flexible regulations. Until then, all eyes will be on Damus and Apple, eagerly waiting to see the ripple effect of their dispute on the wider tech landscape.

$BTC