• Blur has announced a Season 2 BLUR airdrop, which will add 300 million additional BLUR tokens to the circulating supply.
• The increased supply of tokens may decrease the demand, resulting in a price drop and potentially threatening the platform’s success.
• The Season 2 airdrops will also be distributed via a gamified program to incentivize user loyalty.
What is Blur?
Blur is an NFT marketplace and aggregator platform that recently became one of the most popular Ethereum NFT trading platforms by trading volume. It is currently valued at $1 billion and its daily trading volume grew almost 4X after it released its native token, BLUR.
What are the Season 2 Airdrops?
Blur has announced its Season 2 BLUR airdrops, which will see 300 million additional BLUR tokens added to the circulating supply. This move has raised concerns about the potential impact on the token’s value and the stability of the platform. As this would double the current circulating supply, it could lead to a higher supply-to-demand ratio, potentially putting downward pressure on price.
How Do They Work?
The Season 2 airdrops will be assigned based on each user’s „loyalty score,“ which is determined by their interaction with and commitment to Blur’s trading platform. Buyers and sellers who only use Blur for their trades receive 100% loyalty scores, while other users receive lower scores depending on their activity levels. Additionally, these drops will be distributed in a more fixedly gamified program to further incentivize user loyalty.
What Are The Risks Involved?
Experts warn that this increase in circulation may result in decreased demand for BLUR tokens as investors opt for more stable alternatives, leading to significant problems for Blur’s position as an NFT marketplace leader. Level 1 users who participated in earlier drops may not suffer much from this price drop; however Level 2 users may have bought into this project assuming high trade volumes were sustainable but find themselves with devalued digital assets due to dumping caused by decreased demand.
Conclusion
Although Blur has become one of the most successful Ethereum NFT trading platforms due to its native token release, its success may not be sustainable if there are significant price drops due to increased circulation from its upcoming Season 2 airdrop program. Users should weigh up all risks involved before participating in these airdrops or investing in any digital asset associated with them.
