For millions of gamers and developers alike, Discord is more than a communication tool — it’s the digital campfire where gaming communities gather, organize, and evolve. But as the platform inches closer to a rumored IPO with JP Morgan Chase at its side, the question on everyone’s mind is simple: how will Discord make money without wrecking what makes it special?
At the 2025 Game Developers Conference, Discord execs spoke candidly about where things are headed. The picture that emerged was complex — a company wrestling with growth, strategy pivots, and a very real fear of “enshittification” (a term coined by Cory Doctorow to describe platforms that ruin themselves chasing short-term profit).
Let’s break down what’s really at stake as Discord looks toward Wall Street.
IPO Incoming: Why Now?
Discord’s IPO rumors date back to late 2024, when then-CEO Jason Citron openly floated the idea. Now, as reported by Bloomberg in March 2025, the company is actively preparing to go public, tapping financial powerhouse JP Morgan Chase to make it happen.
Why the timing? Several reasons:
- Discord now boasts hundreds of millions of registered users.
- It has become a critical tool for game developers’ community engagement.
- Investor appetite for post-pandemic social platforms is rebounding.
But going public means pressure. Wall Street doesn’t care about “vibes.” It wants growth, returns, and monetizable users. And Discord — a free app by nature — has to walk a razor-thin line between profit and user loyalty.
Discord’s Business Wobbles: Growth, Retraction, and Recalibration
Over the last five years, Discord has had its fair share of business pivots — some smart, others shaky.
- In 2021, Discord tried to position itself as a “digital third place,” launching Stages and emphasizing non-gaming communities. Surveys showed that 80% of users were already using Discord for more than games.
- By 2024, that experiment fizzled. Discord laid off 170 employees and shifted back toward its gaming-first identity. The pivot was positioned positively, but it was clearly a strategic retreat.
Senior VP of Product Peter Sellis put a spin on the move, framing it as a narrowing of focus — back to being “the best place to talk and hang out before, during, and after a game.”
The silver lining? Discord’s bet on optimizing its mobile app for low-end devices paid off. That helped lock in a more globally diverse user base, especially in regions where smartphones dominate.
The Core Strategy: Nitro Over Ads
Unlike most social platforms chasing ad dollars, Discord is betting big on subscriptions — specifically, Discord Nitro.
Nitro offers perks like:
- Higher-quality video and voice
- Larger file uploads
- Custom emojis and server boosts
- Premium access to new features
According to Discord’s leadership, this isn’t just a vanity bundle. It’s the engine behind all monetization efforts.
Even the Discord Shop — where users can buy cosmetic add-ons — is downstream of Nitro. Users who subscribe to Nitro are the ones most likely to spend money elsewhere on the platform. As Sellis explained:
“There are three predictors for if someone will buy Nitro: how long they use Discord, how often they use voice chat, and how many of their friends already have Nitro.”
This incentive structure creates a network effect. The more Nitro users someone’s connected to, the more likely they are to convert. It’s sticky, subtle, and hard to replicate.
What About Advertising?
Yes, Discord has ads — but not in the traditional sense. Their biggest advertising mechanism right now is the quest system. Quests are in-app event-style prompts that reward users for trying out new games or features. It’s a kind of soft ad unit that appeals specifically to players rather than the broader public.
Unlike Facebook or TikTok, Discord doesn’t push banner ads or autoplay videos into feeds. That’s deliberate — and possibly temporary. Depending on how the IPO goes, more aggressive ad placements may emerge. But for now, the shop and quest systems remain secondary to Nitro.
The “Carrot and Stick” Scenario
Let’s be honest: a public company faces constant pressure to increase revenue per user. That means Discord’s future likely depends on a balancing act between incentives and limitations.
The carrot: Enhance Nitro even further. Think developer-driven perks, exclusive content drops, or even early access to games and features tied directly to Discord partnerships.
The stick: Begin locking more formerly free features behind the Nitro paywall. Reduced customization, degraded voice quality, or slower uploads for free users — all theoretically on the table.
This is where “enshittification” comes in. If Discord goes too far chasing conversions, it risks hollowing out the experience that built its reputation. Just ask Tumblr, Twitter/X, or even early Facebook — the road from IPO to irrelevance is paved with over-monetization.
Discord’s Role in the Future of Online Gaming Culture
Here’s the bigger picture: Discord isn’t just a chat app. It’s a cultural layer across modern gaming. From LFG servers in Destiny, to mod communities for Minecraft, to dev Q&A streams for indie titles, it’s become a real-time social infrastructure.
If Discord monetizes poorly, it could destabilize entire communities built around games. Devs might be forced to jump to alternatives. Indie studios that rely on Discord for organic growth could lose their lifeline.
That’s why Discord’s monetization strategy isn’t just a business issue — it’s a game development issue. And it’s why so many industry eyes are watching what happens next.
