NFT market and aggregator platform, Blur, has introduced its Season 2 BLUR airdrops, which can see 300 million extra BLUR tokens added to the circulating provide. Nevertheless, this transfer has raised considerations in regards to the potential influence on the token’s worth and the steadiness of the platform.
The Influence 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 traders could go for extra steady alternate options. Specialists warn that this may increasingly lead to a big downside for the platform, which can wrestle to keep up its present place as a number one NFT market.
It is very important observe that Stage 1 customers who participated within the airdrops could not really feel the influence as a lot as Stage 2 customers. The latter group could have purchased the token based mostly on excessive commerce quantity and thought that the venture was strong, which might not be the case. They might have ultimately dumped the token, inflicting a big downward strain on the token’s value.
How the Airdrops Work
Blur clients can be assigned a “loyalty rating” based mostly 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 person’s loyalty rating, together with the amount of NFTs they checklist, will decide what number of BLUR tokens they’ll in the end acquire in a later airdrop.
Gamifying the Course of
The Season 2 airdrops can be distributed to merchants in a extra fixedly gamified program, in keeping with the corporate. Which means clients can be incentivized to stay dedicated to the buying and selling platform to obtain extra tokens. Nevertheless, this might 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 presently valued at $1 billion, and its each day buying and selling quantity grew nearly 4X after it launched its native token, BLUR. The platform has even overtaken the once-untouchable competitor, OpenSea, as the preferred Ethereum NFT buying and selling platform by buying and selling quantity. Nevertheless, Blur’s success might not be sustainable if the worth of the BLUR token continues to drop.