The good news is that the renewal rate was high enough for App.net to be profitable and self-sustaining on a forward basis. Operational and hosting costs are sufficiently covered by revenue for us to feel confident in the continued viability of the service. No one should notice any change in the way the App.net API/service operates. To repeat, App.net will continue to operate normally on an indefinite basis.
The bad news is that the renewal rate was not high enough for us to have sufficient budget for full-time employees. After carefully considering a few different options, we are making the difficult decision to no longer employ any salaried employees, including founders.
I think it's a tough case to make, that the service will keep plugging along, but there will be no full-time staff to support it and make it really flourish. People get busy with new things when they're not employed, interest fades. These sorts of projects become zombies.
I think it's a huge bummer. I would love to have seen App.net thrive. I just don't think they were ready to really with a clear message to describe the service to the world right when the world needed a clear definition of what it is.