Sorry guys, we’ve pulled the plug on knewsroom.

When we started kluster labs we called it a “lab” for a reason: each property we launch within it would simply be an experiment. we would celebrate the failure of labs projects just as much as we would the success.

There are two primary reasons behind the decision we’ve made:

What we want kluster to be: We built kluster so that groups could influence a company’s decisions and get paid for doing so. knewsroom did not fit that model, and we have a list of labs candidates that do, that we would rather spend the time building (including namethis improvements). As you all know, we are a small team and we need to make sure we focus our resources on projects that will grow the business and community the fastest .

Cost: It cost a substantial amount to run the knewsroom. With little-to-no ad revenue coming in, it was simply making us lose more and more money on a daily basis. We could have kept dropping rewards for participation, but that’s would be no fun… and does nothing to prove the model we were trying to prove. If knewsroom was going to stick, it needed to be able to pay its contributors substantially… something we could only stomach doing out of our pre-funding, startup pocket for so long.

This decision came after our board meeting on Wednesday, during which our board of directors (myself, Bo Peabody, Lee Bouyea, and Kevin Owens) set a clear direction for the company, its milestones, and criteria for investments in lab projects.

At 6am today, beloved community-directed news publication, knewsroom, was pronounced dead at the age of 37 days. The coroner’s report rules out early suspicions of foul play, citing starvation as the cause of death.

Knewsroom is survived by younger sibling, namethis, and parent, kluster-currently expecting an addition to the family in early July. Meanwhile, knewsies continue their digital vigil, mourning the loss of a promising idea. No formal service will be held.

I know there are some loyal knewsroom supporters out there, and we thank you… but trust us, there will be more exciting stuff coming. Labs will be simple, and most importantly… provide a way for participants to earn substantial amounts of cash without kluster having to lay it out.

In honor of the 43rd birthday of Dermontti Dawson, soon-to-be hall of fame center for the Pittsburgh Steelers, we’re celebrating by giving 2000 watts to each community member.

Like Dawson, who made 7 straight Pro Bowls, the Kluster community is filled with all-stars. Since launching NameThis (and as of this blog post), you have proposed 9,030 names and invested 870,000 watts.

Thanks.

We’d also like to thank you for all of your feedback as we build out more exciting features for NameThis, Knewsroom, and the rest of the Kluster portfolio. We have some great things planned and can’t wait to roll them out. Stay tuned.

And one last thing, everyone rush out and grab the latest and greatest browser, Firefox 3. Today is download day and not only can you participate in setting a Guinness Book record by downloading it, it’s also the nicest thing you can for every friendly web developer in your life.

UPDATE: I didn’t realize but I’ve now been made aware that today is also Barry Manilow’s birthday. We here at Kluster, especially Ben, couldn’t let the opportunity pass by. Everyone has received an additional 195 watt bump for Barry Manilow’s 65th birthday. 195 watts because he’s 3 times the man of any of you.

For those running out of watts on namethis.com, check out knewsroom.com and get participating. There’s lots of watts at stake over on that side, too!

Have a great weekend!