I sort of feel like Primal took away some of Damus' marketshare. Smaller clients (snort isn't one) can still push things forward

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Yea but will they, I think there is probably more temptation to take the primal route now for new clients

Maybe, but that's lame and myopic. The more people develop in a principled way, leaning on relays and other utilities to support server-side features, the easier it will be to build new products, and the faster the ecosystem will develop