Journalist
Posted:
- Blast garnered large consideration over the previous few weeks.
- Criticisms of it being a Ponzi scheme have surfaced.
Blast protocol, over the previous few weeks, has taken the crypto world by storm. In a brief time period, Blast has managed to make important progress throughout numerous sectors.
What’s Blast?
Blast is a Layer 2 resolution the place customers deposit crypto, like staked Ethereum and stablecoins, to earn returns.
In simply 4 days, the Blast mainnet contract attracted $415 million in Complete Worth Locked (TVL). Many joined to get the Blast L2 airdrop by means of their factors system.
Based on ASXN’s analysis, they simplify issues: 50% of the airdrop goes to builders, and 50% to Early Entry Customers.
The Early Entry Consumer airdrop is break up between Blast deposits and Blur stakers.
Nonetheless, it is a easy view. Staking and deposit quantities change, they usually don’t contemplate how factors are distributed, seemingly following an influence regulation. Their evaluation estimates that with $412 million TVL, $50 million of BLAST tokens may very well be earned.
However the true distribution will depend upon how factors are given out.
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The Blast mainnet contract has sucked up $415M in TVL in simply 4 days, with many members searching for to earn the Blast L2 airdrop through their factors mechanism.
Let’s attempt to get a ballpark estimate of the return on deposited capital into Blast & from staking Blur: pic.twitter.com/GnzrLRwJt0
— ASXN (@asxn_r) November 24, 2023
If it seems to be like a duck, swims like a duck, then it in all probability is…
Nonetheless, many members within the crypto group have been accusing Blast of being an elaborate Ponzi scheme attributable to its incentive program and excessive rewards.
The invite system, the place customers get factors for inviting others, is inflicting controversy. Some say it seems to be like a pyramid scheme.
Critics word there’s no clear manner for customers to exit, which may very well be an issue for withdrawing funds or becoming a member of on-chain actions.
Grasp-Piece or Grasp-Ponzi…
Let’s expose the TRUTH about @Blast_L2 :
(🧵👇) pic.twitter.com/6u9iwV2LiD
— Landon Sousa | Avem (@avemfn) November 23, 2023
The CEO of Blast responded to those criticisms, addressing rewards and the invite system in a current tweet. Although some say Blast looks as if a pyramid scheme, the CEO has clarified that the yield comes from Lido and MakerDAO.
Lifelike or not, right here’s LDO’s market cap in BTC’s phrases
Lido will get its yield from ETH staking, part of Ethereum’s Proof-of-Stake mechanism. MakerDAO’s yield comes from on-chain T-Payments, necessary to the US financial system.
I’ve seen numerous misunderstandings about Blast spreading round. Whereas many of those are humorous memes, it is necessary to set the report straight on a couple of factors:
— Pacman | Blur + Blast (@PacmanBlur) November 24, 2023
Solely time will inform whether or not Blast could have a long-lasting impression on the L2 sector. Nonetheless, the protocol might act as a constructive commercial for the rewards on MakerDAO and Lido.
