In a demonstration video for how the replies function will soon look, "@username" is replaced with a thread line that shows different tweets in a conversation.
The names of users involved in the conversation are displayed above the tweet after the text "replying to."
Another feature in the May blog post missing from the roll out was the update that would make all replies appear on a user's feed, making it unnecessary to use ".@" when trying to display replies to a user's audience. Twitter did not confirm if this feature is being tested or when users can expect it in the future.
The product change comes during a rocky period for a company that has seen declining revenue growth and stock value in recent years. Twitter reported that this last quarter saw the slowest revenue growth for the company since it went public in 2013.
The platform has struggled to expand its user base and drive up engagement beyond its core group of devoted users, which in turn affects advertising interest.
If you can't keep people on the site and sharing to the site, where are advertisers' dollars going?
Twitter chief executive and co-founder Jack Dorsey has cited streamlining the site's user experience, such as excluding mentions and links in a tweet's character limit, as one part in the effort to attract new users.
Rita Gunther McGrath, a professor at Columbia Business School who focuses on business strategy, says the relaxation of character limits could be a way to encourage users to post more images and videos, which some research has shown capture more users for longer. "They want their content to be more engaging," she said. "If you can't keep people on the site and sharing to the site, where are advertisers' dollars going?"
Twitter's stock dropped on the New York Stock Exchange by 3.92 per cent.