Assessing Blur’s Impression 🤔 – by William M. Peaster


Metaversal is a Bankless e-newsletter for weekly level-ups on NFTs, digital worlds, & extra!

Pricey Bankless Nation,

Blur has dominated the market share of the NFT market sector since February 2023, when $BLUR Season 2 rewards have been launched. 

But the NFT area has additionally seen flooring costs and different stats trending downward ever since, main some to name out the platform’s operations as damaging to the ecosystem. 

What’s all of it about? Let’s get you caught up on this vital dialogue for at this time’s publish!


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To what extent has Blur’s Season 2 $BLUR farming contributed to this yr’s downturn in NFTs? For my part, it’s inconclusive. 

The Nansen NFT-500 index has declined 75% since Blur’s Season 2 rewards farming started

Keep in mind, the Season 2 system awards merchants with bidding and itemizing factors, which is able to later be transformed into $BLUR rewards.

A outstanding criticism in opposition to this technique is that it seemingly incentivizes NFTs to get dumped again and again, pressuring flooring costs decrease as farmers settle for ETH losses on bids to allow them to hold buying and selling in alternate for extra potential $BLUR income later.

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Blur farmers descended on Wrapped CryptoPunks in late March 2023; coincidence or causal that the ground worth is down ~20 ETH since then? – h/t S4mmy.eth through NFT Value Flooring

The crux of the query right here is the extent, how a lot stress is coming from Blur, and is it the primary reason behind stress right here?

In fact, we are in a crypto bear market, and a focus and exercise ranges are down bigly throughout the board. If curiosity’s down, costs go down. If confidence’s down, costs go down. For instance, many individuals have dumped from their collections as morale and narratives have sunk, just like the latest deflation of Azuki’s status after its controversial $40 million Elementals mint. 

And there are different influences in play too, like how NFT flooring costs pumped en masse final week after NFTperp paused its v1 system and NFT shorts immediately dried up. There are numerous transferring elements which might be affecting the NFT ecosystem at any given time, to make certain. 

Personally, I do assume if $BLUR farming stopped proper now we’d see a point of stress come off NFT flooring costs. On the flip aspect, I feel Blur defenders make a compelling level that $BLUR incentives have generated main liquidity and created new patrons out there, and thus that NFT costs might need cratered even worse in latest months if it wasn’t for the prospect of those rewards. 

So once more, I don’t assume you may say conclusively that Season 2 $BLUR farming has been the fundamental driver of this yr’s NFT downturn. I don’t doubt in any respect that $BLUR farming pressures flooring costs, e.g. when massive whales like Machi Huge Brother dumps dozens or 100s of NFTs en masse to rotate farming positions, however I additionally don’t doubt that these rewards have additionally helped stem deeper selloffs within the area in latest months. So there’s some counteracting impact that’s gone on right here I consider.

Is Blur consuming NFT challenge market caps to realize and preserve market share? One may argue so. Are $BLUR incentives finest for Blur? Positively. However is Blur the singular reason behind the NFT bear? No, I don’t assume so. 

In distinction, I feel the place you can extra readily hit Blur is the place you may hit most NFT marketplaces proper now, particularly for killing the vibe by not remaining steadfast on NFT royalties, which have died right down to a trickle throughout the board as {the marketplace} wars have raged on in latest months. 

Discuss to most non-technical creatives who’ve arrived within the area over the previous few years, and automatic royalty funds on secondary gross sales have been an enormous draw for a lot of if not, properly, all of them. It’s certainly one of non-skeuomorphic “solely doable with NFTs” issues that’s misplaced its magic now that its energy’s been pierced. 

For my part, it’d go a good distance if Blur and OpenSea and others reverted from this new meta of constructing royalty funds optionally available to easily imposing the charges that creators set, and dealing towards that cultural norm as soon as extra of royalties being thought of a part of NFTs full gross sales worth, like how IRL “service included” institutions cowl gratuity of their full payments. 

Deliver the great vibes again, convey royalties again, convey a second wind to NFT creators. Would doing this cease the NFT bear market in a single day and repair all our issues? No. Would it not win everybody to Blur’s aspect? No. But it may result in a rallying impact in additional methods than one that will be good for Blur, good for the area, and flip anti-Blur narratives on their heads!

  • ❓ What’s your tackle Blur’s present influence, yay or nay? Let me know your two gwei within the feedback under!

  • 📰 Atone for my beforehand weekly NFT roundup: Perp’s Pause? Pixel’s Pump

William M. Peaster is the creator of Metaversal — a Bankless e-newsletter centered on the emergence of NFTs within the cryptoeconomy. He’s additionally a senior author for the primary Bankless e-newsletter.

A Bankless Citizen ⚑ turned $264 into $6,077 final yr. A 22x ROI 🚀 in a bear market!

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Not monetary or tax recommendation. This text is strictly instructional and isn’t funding recommendation or a solicitation to purchase or promote any property or to make any monetary choices. This text isn’t tax recommendation. Discuss to your accountant. Do your individual analysis.

Disclosure. From time-to-time I could add hyperlinks on this e-newsletter to merchandise I exploit. I could obtain fee for those who make a purchase order by certainly one of these hyperlinks. Moreover, the Bankless writers maintain crypto property. See our funding disclosures right here.


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