- Introduction
- Bluesky’s business structure and ownership
- Bluesky’s origins as a Twitter side project
- The AT Protocol: Bluesky’s open-source foundation
- Growth of Bluesky in the social media landscape
- Bluesky funding milestones
- The road ahead
Bluesky
- Introduction
- Bluesky’s business structure and ownership
- Bluesky’s origins as a Twitter side project
- The AT Protocol: Bluesky’s open-source foundation
- Growth of Bluesky in the social media landscape
- Bluesky funding milestones
- The road ahead
- Headquarters:
- Seattle
- Areas Of Involvement:
- blog
- social network
Bluesky is a social media app where users post short messages of up to 300 characters, known as microblogging (similar to a tweet). Bluesky started in 2019 as a project within Twitter, led by then-CEO Jack Dorsey, that was intended to give users more control over how their content was shared and moderated.
In 2022 Bluesky became an independent company, reflecting its broader mission to develop tools for decentralized communication. The move came shortly before Twitter underwent a significant transformation, changing its name to X and redefining its focus.
Bluesky’s business structure and ownership
Bluesky is a public benefit corporation (PBC) primarily owned by software engineer Jay Graber. Its board of directors includes Jeremie Miller, the inventor of Jabber; Mike Masnick, author of the paper “Protocols, Not Platforms,” which inspired the Bluesky project; and Kinjal Shah, a general partner at Blockchain Capital, a venture capital firm.
Bluesky’s original board included Dorsey, but the Twitter cofounder quit the board in May 2024.
What is a public benefit corporation?
A PBC is a for-profit company that balances making money with doing good—socially, environmentally, or both. Unlike traditional corporations, PBCs prioritize the interests of employees, communities, and the environment alongside profits.
Examples of PBCs:
- Patagonia: An outdoor clothing company known for its environmental activism.
- Ben & Jerry’s: A Vermont-based ice cream maker that supports social justice causes.
- Allbirds: A footwear company focused on using sustainable materials.
Public benefit corporations operate under legal guidelines to ensure business decisions support their missions. Bluesky’s designation as a PBC reflects its goal of prioritizing user control and community benefit along with making a profit.
Bluesky’s origins as a Twitter side project
Bluesky was founded as a Twitter side project in 2019. The goal was to create a new social media network where users—and not just the site—could control how content is shared and moderated. Twitter provided the initial funding, and Dorsey picked Graber to head the team.
The plan was for Twitter to eventually integrate Bluesky’s decentralized tools, such as customizable feeds, into its existing network. In 2021, however, Bluesky became an independent company, although it maintained a financial and service agreement with Twitter until the partnership ended in 2022. Neither company disclosed reasons for the separation, although the move came amid broader changes at Twitter as it transitioned into X.
The AT Protocol: Bluesky’s open-source foundation
Bluesky is built on the AT Protocol, an open-source framework designed to support decentralized social media networks. The protocol allows different networks to work together, giving users control over how their content is shared and moderated.
The AT Protocol allows users to switch among servers to find one that best matches their preferences for rules, moderation, and community interactions. For instance, users can join a server with stricter moderation and create feeds that prioritize friends’ posts while filtering out ads.
Users can also customize their feeds by combining posts from friends, creating personalized streams, and setting rules for how content is moderated. These features give users more flexibility than traditional networks and reflect Bluesky’s goal of putting users in charge of how they interact online.
The skinny on microblogging
Microblogging combines the brevity of a tweet with the personal touch of a blog post. It lets users share short updates, photos, links, or videos—typically just a few sentences or a single image or clip—on popular sites such as X, Instagram, Tumblr, and emerging networks like Bluesky. Unlike traditional blogging, which often involves detailed, lengthy posts, microblogging thrives on quick, real-time interactions.
Bluesky uses algorithmic feeds that organize content based on activity, preferences, or other factors, but users have greater control over them than they do on X, Facebook, and Instagram. For example, Bluesky’s feed is chronological by default, allowing users to view posts in the order they were made. Users can also adjust their settings to filter content and tailor their feeds to their interests, offering more personalization than centralized alternatives like the microblogging app Mastodon.
Growth of Bluesky in the social media landscape
Bluesky saw some initial growth in 2023 after Twitter changed its name to X, which spurred interest in alternative social networks. Bluesky positioned itself as a place for open discussions, encouraging transparent and unmoderated political conversations, much like a town square.
Bluesky saw steady growth in 2024, which accelerated dramatically during the summer and fall. Observers attributed this growth to dissatisfaction with changes made by X and concerns about content moderation. Bluesky’s decentralized tools and greater user control also drew users seeking an alternative to traditional social networks.
By the end of October, Bluesky’s user base had more than doubled, growing to more than 13 million from 6 million in August. The U.S. presidential election in November sparked a sharper surge, with an additional 2.5 million users joining in a week. This surge, fueled by heightened political conversations and dissatisfaction with moderation on larger networks, brought Bluesky’s user base to 25 million by early December.
Despite significant growth, Bluesky remains far behind both X and Threads, which reported hundreds of millions of users in 2024.
Bluesky funding milestones
After ending its agreement with Twitter in 2022, Bluesky raised $8 million the next year in seed funding. The funding round was led by venture capital firm Neo, with support from several angel investors.
In October 2024 Bluesky raised $15 million in Series A funding led by Blockchain Capital. The funding is expected to help Bluesky expand its decentralized tools and enhance its appeal to users seeking alternatives to traditional social media networks.
Bluesky also addressed speculation about its plans, saying it doesn’t intend to become a blockchain project or use cryptocurrency tokens, non-fungible tokens (NFTs), or similar technologies to generate revenue.
The road ahead
Bluesky plans to introduce subscription options that would allow users to financially support those who create and post content on its network. Subscriptions could include features such as the ability to upload higher-quality videos. Bluesky says it won’t prioritize paid accounts in its feed.
Bluesky also touts tools for developers to create apps, such as Smoke Signal (an events app) and Bluecast (an audio app), to demonstrate its versatility.
Bluesky’s future as an alternative to other social media networks depends on its ability to sustain user growth while fulfilling its promise of openness and user control—qualities that defined the early days of the Internet.