NFT market and aggregator platform, Blur, has introduced its Season 2 BLUR airdrops, which can see 300 million further BLUR tokens added to the circulating provide. Nonetheless, this transfer has raised considerations in regards to the potential influence on the token’s worth and the steadiness of the platform.
The Affect of the Airdrops
The Season 2 BLUR airdrops will double the present circulating provide, resulting in a better supply-to-demand ratio, which might put downward strain on the token’s value. The elevated provide might lower the demand for the token, as buyers could go for extra steady options. Consultants warn that this will lead to a big drawback for the platform, which can wrestle to take care of its present place as a number one NFT market.
You will need to word that Degree 1 customers who participated within the airdrops could not really feel the influence as a lot as Degree 2 customers. The latter group could have purchased the token primarily based on excessive commerce quantity and thought that the mission was strong, which will not be the case. They could have ultimately dumped the token, inflicting a big downward strain on the token’s value.
How the Airdrops Work
Blur clients shall be assigned a “loyalty rating” primarily based on their interplay with and dedication to the buying and selling platform. Consumers and sellers who chorus from utilizing another NFT market will obtain a 100% loyalty rating. A consumer’s loyalty rating, together with the amount of NFTs they checklist, will decide what number of BLUR tokens they are going to finally acquire in a later airdrop.
Gamifying the Course of
The Season 2 airdrops shall be distributed to merchants in a extra fixedly gamified program, in line with the corporate. Because of this clients shall be incentivized to stay dedicated to the buying and selling platform to obtain extra tokens. Nonetheless, this will not be sufficient to make sure the platform’s success, given the challenges posed by the doubled circulating provide and potential value drops.
Blur’s Present Standing
Blur is at present valued at $1 billion, and its every day buying and selling quantity grew virtually 4X after it launched its native token, BLUR. The platform has even overtaken the once-untouchable competitor, OpenSea, as the most well-liked Ethereum NFT buying and selling platform by buying and selling quantity. Nonetheless, Blur’s success will not be sustainable if the worth of the BLUR token continues to drop.