Decentralized social media app Damus may face Apple App Store price cut over Bitcoin
Tip function. On June 13, the creators behind Damus shared a warning letter from Apple saying the app would be removed from the platform because of a "Zaps" feature that allowed people to tip users and content creators in Bitcoin. This functionality is enabled by integrating the Lighting Network widget for Bitcoin payments and tipping on the platform.
In its warning, Apple said the Zaps feature violated its policy prohibiting tipping of any kind other than in-app purchases. The tech giant said that even though the tipping feature may be optional, "if they [users] are connected to or associated with receiving digital content, they must use in-app purchases in accordance with guideline 3.1.1."
The Damus team calls this a watershed moment with huge implications for platforms that support peer-to-peer (P2P). The team also clarified that Damus does not sell digital goods, nor does it provide the functionality to do so. It just has hint buttons for facilitating P2P transactions like Venmo or Cash App. Bitcoin and crypto tipping have become very popular on social media platforms, with Twitter and Reddit supporting the feature. The crypto tipping function makes way for P2P transactions that do not require intermediary processing. Apple itself approved the "Game of Birds" app with bitcoin tips in 2015.
A Nostr creator, who goes by the Twitter handle Walker, stressed that Apple was wrong about the Zaps issue because Damus doesn't sell any digital content, and the creator is asking the tech giant to right it. Many other crypto proponents also questioned how tips on Twitter would be accepted, but the same feature on Damus violates Apple's policies. Others accused Apple of protecting Silicon Valley interests.
