Key Points: The Blur airdrop highlighted that cryptocurrency users need to take better security measures.
Blur’s innovation is in adopting a sequential airdrop method, which builds the network in stages. It matches new product launches with the network.
The lessons learned from the airdrop should be used by cryptocurrency projects to improve future airdrops and promote better security practices.
Blur, which was launched 5 months ago, has been the industry’s leading NFT marketplace and trading platform. It held over 40% of the market volume before the February 2023 airdrop. Blur has been the industry’s top NFT marketplace and trading platform since its public launch five months ago. It holds over 40% market share by volume before the February 2023 airdrop. The common token play focuses on one-time retrospective airdrops to motivate participation and reward early users (e.g., Uniswap, ENS); to continuous liquidity mining projects that reward users for performing certain actions (e.g., LooksRare, Compound).Researching Blur reveals a more complex token distribution design that offers staged rewards to queue the growth of the network. This analysis will be split into two parts. The first will explain Blur’s token strategy and offer advice to founders who want to expand their network with the token. The Blur airdropBLUR currently has a total supply 3 billion tokens. Of these, 360 million (or 12%) were airdropped on February 14. On February 20, 112,000 wallets had claimed the airdropped tokens. 93% of tokens were claimed. The total value of the airdrop at $1.21 per token was $435 million. There were four phases to Blur’s token incentives prior to the airdrop. These phases are different from airdropping tokens. Instead, users receive off-chain care packages that can be viewed on Blur’s website as credits for future BLUR tokens and mystery boxes airdrops. Airdrop: Reward social refers to attract traders to its platform (announced May 4, 2022). These rewards are designed to reward not only high-volume traders but also invites. This airdrop rewards users who are active in Ethereum NFT transactions over the past six months. Users must list an NFT on Blur within 14 calendar days to claim the airdrop.
“Our goal is for Blur to be a marketplace that everyone in the NFT community can benefit from and own.” We will first distribute care packages to everyone who has traded NFTs consistently over the past 6 month.
Airdrop Phase 2 – Rewarding addresses for building market supply (announced October 19, 2022). Blur also announced Airdrop 2, which will reward individuals who list NFTs via Blur by November. Blur’s second airdrop rewarded traders who used their new features, such as their professional order placing tools (e.g. order by NFT feature reserve, floor price NFT, etc.). Airdrop 2 also rewards traders who regularly list their collections and incentivizes blue chip NFT listings.
Airdrop 2 doesn’t count on how many care packages you receive, but loyalty does impact your chances of revealing them. You can list on other marketplaces as long as the price is the same or lower on Blur List. This will not affect your loyalty score. Blur’s advanced ordering tool allows you to list NFTs on all NFT Exchanges at once!
Airdrop Phase 3 – Reward bidding to stimulate the demand (announced December 14, 2022). Blur’s third airdrop focuses on building demand. Blur announced its third airdrop with a focus on building demand.
The majority of points are awarded to the bids that take the greatest risk in a set. If the reserve price is 1.01 and there are 100 bids at 1, then your bid won’t earn you many points. However, if you bid at 1.01 you will get more points as you are taking more risk.
Blur has a loyalty score that determines the rarity of care packages. Listings are no longer incentivized for this period. Rare packages earn more tokens than common packages. Blur’s loyalty score is what determines the rarity of care packages. This allows users to open their care packages and reveal the BLUR tokens within. Blur tweets are pre-filled with the requested amount of tokens (users can edit tweets and claim airdrops). Blur tweets are pre-filled with the requested amount tokens (users have the ability to edit tweets and claim airdrops). Key Lessons from the Blur AirdropBlur’s innovative airdrop design offers some important lessons: Market Growth for Sequential Airdrops
Blur’s innovation is in its adoption of a sequential model for airdrops. This builds the network in stages and matches product launches.
The network is constructed in stages, according to the order in which supply is first built in the market, then demand.
Blur users are more motivated when they have access to new product features, such as bidding contracts.
Blur, like most cryptocurrency projects, decided to keep the airdrop details secret until launch. But the point is that they abstracted the details behind an gamified and quantifiable package that provides short-term rewards for users in the interim. Each subsequent airdrop is “more valuable” than the previous, creating an incentive for users to continue participating. LooksRare’s volume-based rewards system allows traders to calculate the amount of tokens and dollar value they will earn based upon how much they trade in a given day. Researchers found that traders are more motivated to win a reward than uncertainty, which has led to a lot of wash trading. Blur’s model closely resembles the four-step process of habit-forming proposed by Nir Eyal. It includes a trigger point for using the product, an action that fulfills the trigger point, and a variable reward. Finally, some type or investment that ultimately makes it more useful to the user. To reward loyalty and promise more Blur Tokens, Blur offers care packages of varying rarity. Gamifying uncertainty creates an incentive for users, allowing them to receive rarer care packages.
To get on the beta list, users must earn as many Blur points possible. Blur rewards users’ viral coefficient, which is the number of new users generated from existing users. Users who share more receive more points. Blur received a flood of invites from users who shared referral links in group chats and influencers tweeting. Users who receive the beta can earn points for their first airdrop. Participants on the waitlist or beta users can also earn additional airdrops from Blur. Blur encourages users to share on Twitter, including the promise of a care package to any user who retweets the announcement. To claim Blur’s Airdrop, you must tweet to open the “care package”, which will contain Blur’s information. Although users can circumvent this and still receive an airdrop (e.g. via tweet and delete), it generated a lot of buzz on the day of airdrop. Transfer liquidity to Blur
Blur’s loyalty score, which determines the rarity and availability of the Care Package airdrop, is determined by how well traders keep Blur competitive exclusivity. Blur’s loyalty score is maximized by traders listing NFTs at a lower price on Blur than in other markets. Listing an NFT at a lower cost on other marketplaces will lower a user’s loyalty score. This incentive encourages traders to list NFTs on Blur for a lower price. This creates a supply moat and increases Blur’s appeal to NFT buyers. For new users, there will be continuous incentives
Blur announced, unlike many other airdrop projects that are aimed at early adopters (like many others), that it will continue to distribute tokens to new users in the second seasons and will provide additional incentives for traders who list NFT and bid on NFT within the thirty-day period following the airdrop. To apply for the care package, you will need to view the animated slideshow about Blur’s function and then purchase NFT through market. Then, place it on Blur’s shelves. This is a strategic timing decision, as Blur’s website will likely experience significant user traffic the day of the airdrop. This is a great way to acquire customers by meeting new users and incentivizing them use Blur.
Blur created an Incentive Committee to incentivize Blur adoption. The committee will be able to deploy 10% of the community’s token supply on the day of the airdrop. Blur announced an Incentive Committee that will have the power to deploy 10% of the community token supply to further encourage Blur adoption. This is similar in concept to web2’s strategy to constantly update incentives to optimize network dynamics. Improvement suggestions and open issuesWe identified several areas of opportunity in the future of the airdrop. One of Marc Boiron’s Sufficient Deccentralization Playbook’s proposals is to incentivize Committee to become a sub-DAO similar to the Uniswap Foundation. This could be a sustainable way to decentralize and retain users. As the market develops. Keep the motivation alive. Future airdrops may benefit from a time-locked vesting schedule. This would mean that users who sell will not be eligible for the remaining airdrop. Airdrops could also be contingent on certain actions, such as continued use (e.g., listing or bids per month) or governance participation. Blur creates a buyer lock-in by using bidding contracts. Users must deposit money into Blur bidding contract in order to bid. There were $128 million in bid contracts deposits as of February 20, which represented potential bids. Blur could also increase its demand-side maintainability by allowing users the opportunity to earn a yield on their deposited capital, offer professional traders additional financial products, or use other incentives to lock in liquidity. Token creation tool Creating a supply moat for NFT markets will be crucial for future defensibility. Token utility: Making the token a key part of the product experience and increasing demand for it can be the next focus. This could be inspired by tokens such as Binance’s BNB which offers discounted trading fees on the exchanges or SuperRare’s RARE which requires curators to manage independent storefronts on a platform called Spaces. Finally, the question of whether the token can generate value. Twitter users have been asking about the value of Blur token holders since the token was launched. This is because there is an equity company that maintains and builds the front end. Blur is the only application that uses its protocol. This could lead to distorted incentives for driving the DAO’s value vs the letter of promise. Looking ahead to the next iteration, the long-term consequences of Blur’s airdrop strategy will only be apparent over time. Over 75% of airdrop recipients sold a portion of the airdrop to date. Early data suggests that the airdrop had an impact. However, Blur’s bulk share rose from 40% to over 80% within a matter of days (according to bid source). Blur’s airdrop broke new ground in token adoption and network growth. Token incentives should be geared towards improving core KPIs, long-term retention and stickiness. Token ownership should result in products that are more successful than those without token ownership. This requires that you create products that people want, decentralize as necessary, and then tailor a plan for each protocol and product. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuHaroldCoincu NewsTags: BlurBlur AirdropCompoundLooksRareNFTWeb3