The ascendant NFT marketplace Blur said on Tuesday that it will shortly airdrop about $300 million worth of more tokens to its loyal users, just days after surpassing OpenSea as the most popular Ethereum NFT trading platform based on trade volume.
BLUR and OpenSea Rivalry
OpenSea, once considered the single leading Ethereum NFT marketplace, has lost users to Blur in recent months, mostly due to the latter’s attractive token-backed incentives program.
What Blur does?
Blur will distribute 300 million of its native BLUR tokens to traders during “Season 2” of the platform, which has already started. According to CoinGecko, the current price of BLUR is $0.99.
“Season 1” ended last week with the release of its native token, BLUR. During “Season 1,” Blur gave “care packages” of BLUR to traders who switched to the platform from a competing NFT marketplace, listed NFTs on the platform right after its October launch, or used Blur to bid on NFTs.
The company says that in “Season 2,” traders will get tokens through a program that is more like a game. Customers of Blur will get a “loyalty score” based on how much they use and commit to the trading platform. For example, buyers and sellers who don’t use any other NFT marketplace will get a score of 100% for loyalty.
The number of BLUR tokens a user will get in a later airdrop will be based on their loyalty score and how many NFTs they list.
Under this new loyalty system, users can increase their chances of getting more BLUR by doing small things. The company gave the impression on Tuesday that even quoting its tweet about Season 2 could boost a user’s loyalty score.
Nevertheless, it is unclear what technical processes Blur has in place to link activity on various platforms, such as Twitter, to stats on its own site.
OpenSea, once considered the single leading Ethereum NFT marketplace, has lost users to Blur in recent months, mostly due to the latter’s attractive token-backed incentives program. Both businesses have offered perks users who blocklist the other.
OpenSea eliminated its 2.5% fee—the company’s main revenue source—for a “limited time” last week, possibly inspired by Blur’s rapid rise and lack of marketplace fees.
Even though Blur has much higher trading volumes than OpenSea right now, most of that activity seems to have been caused by a small number of whale traders flipping NFTs to get as much BLUR as possible from Blur’s rewards program.
The value of Blur’s native token will determine how popular that rewards program is, however. In the last 24 hours, the value of BLUR has dropped by about 24%, down from $1.28.
Content Source: decrypt.com
Cover Image Source: cryptotimes.io