Elon Musk’s offer to take Twitter private with a bid of $54.20 a share, about $43 billion in total, has attracted tremendous reaction on the social media platform. Only hours after the news broke, Justin Sun, founder of Tron network, made an offer of $60 per share, trying to outbid the Tesla CEO, and claimed he would bring Twitter to be a decentralized web3 platform.

FTX’s CEO Sam Bankman-Fried (SBF) also commented on Musk’s tweet, explaining what a decentralized Twitter may look like and adding that FTX would like to be part of the project if there is sufficient demand for making Twitter on-chain.

SBF said once Twitter goes on-chain, everything will be encrypted; meanwhile, tweets will be like DMs with a privacy setting on, as senders can choose who can access them.

There would be two forms of monetization, tweeted SBF, as 1) Twitter charging a small fraction of fees for each message and 2) the User Interface(UI) – showing advertisements to subsidize the network fee.

2) Tweets go on-chain, encrypted; the sender chooses who has access to them (i.e. who can decrypt). In some sense this unifies DMs and tweets–DMs are just tweets with the privacy setting of “only Jill”. — SBF (@SBF_FTX) April 14, 2022

He also suggested that each UI would establish its own set of moderation policies, ensuring that no individuals or entities can control the speech on the platform.

Since the social media would be on-chain, he said naturally, Twitter would include NFTs, digital avatars, on-chain transactions, and Dogecoin on its platform.

However, such a transformation would be an uneasy task to resolve, SBF admitted. Only some layer 1 base chains that scale to hundreds of thousands of TPS would be able to process the amount of information on Twitter. In addition, low transaction fees are key as well.

With these added new features, SBF believes a decentralized Twitter can still maintain a yearly profit of around $300M and will turn the platform to be democratic and financially transparent.

Justin Sun, trying to bid against Elon Musk, claimed he would turn Twitter into a decentralized open-source framework, and move it offshore, making it less US-centric through workforce decentralization.