Blur Airdrop Sparks a New Wave in the NFT Space, Detailed Explanation of Token Economic Model and Governance Mechanism

The highly anticipated Blur Airdrop officially concluded in the early morning of February 15, 2023, distributing 360 million Blur Tokens to the NFT community and Blur users. Community feedback shows that many users received hundreds of thousands of Blur Tokens, and even non-heavy users received Airdrops worth thousands to tens of thousands of dollars, once again triggering the wealth effect in the crypto space.

Data platform statistics show that as of February 15, 1 PM, 80.15% of the Blur Airdrop has been claimed. Among them, 35.8% of the airdrop amounts are between 100 and 1000, 39.6% of addresses received 1000 to 10000 airdrops, and 7.8% of users received 10,000 to 100,000 airdrops. Currently, the top three wallets in airdrop claims have received 3.2 million, 2.97 million, and 2.5 million BLUR, respectively.

This airdrop is aimed at trading users, care package holders, and creators from October 19, 2022, to February 14, 2023. Users who participated in the waiting list or private testing in May 2022 will also receive an additional airdrop. Users have a 60-day claiming period.

It is worth noting that this is only the first round of the Blur Airdrop. The second round of the Airdrop has already begun, and users who bid on and list NFTs on the Blur platform from now until March 14 will receive double points.

Blur Token economic model

The BLUR Token is a utility token issued by the foundation, granting the community control over the DAO. The total issuance is 3 billion tokens, planned to be fully released within 4-5 years. Of this, 51% is allocated to community members, 29% to core contributors, 19% to investors, and 1% to advisors. Tokens for core contributors, launch partners, and advisors are all subject to a 4-month lock-up period.

The release rate is 40% in the first year, 30% in the second year, 20% in the third year, and 10% in the fourth year. The first round of Airdrop distributed 12% of the Tokens, and another 39% will be allocated to the community through various incentive programs.

Blur plans to propose a protocol fee rate after 180 days, up to 2.5%, with the specific rate to be determined by community voting.

Governance Mechanism

BLUR Token holders have governance rights over the protocol. The Blur Foundation will assist in facilitating community-led governance and DAO participation. The governance process includes off-chain proposals, forum discussions, Snapshot voting, on-chain proposals, and execution.

Proposals are divided into core, process, and information categories. Users must hold at least 100,000 BLUR to initiate an off-chain proposal, which must obtain 30 million BLUR votes in favor to enter on-chain voting, and ultimately require 120 million BLUR votes in favor to be executed.

To improve efficiency, Blur DAO has established three committees: Security, Market, and Incentives, responsible for managing specific business areas. This flexible governance structure helps make more comprehensive decisions during the community development process.

Market Cap Comparison

As of now, the circulating market capitalization of BLUR is approximately $294 million, with a total market capitalization of $2.428 billion. In comparison, the circulating market capitalization of X2Y2 is $25.9 million, and Looksrare is $130 million. Data shows that in the past 3 months, Blur accounted for 33.54% of the NFT market's trading share, slightly higher than OpenSea's 33.12%.

Considering Blur's market share and the support from its backing investment institutions, its valuation may be relatively lower than OpenSea, but slightly premium compared to the community-driven X2Y2.

Summary

Blur's airdrop strategy and token economic model demonstrate its emphasis on user incentives and community governance. Through multiple rounds of airdrops and ongoing incentives, Blur not only attracts a large number of users but also aims to enhance the platform's long-term stickiness. Its governance mechanism strives to balance efficiency and decentralization.

Although Blur's market value may have a certain premium relative to its market share, its product experience and the resources behind it still provide a solid foundation for its future development. As the NFT market continues to evolve, Blur's performance is worth keeping an eye on.