What is Blur?

What is Blur?

Blur is a brand new NFT marketplace backed by Paradigm and many other notable individuals from the crypto industry. Blur is targeting Pro Traders as its primary demographic by offering optional royalties, high speeds, and other advanced analytics features.


From a high level, Blur is:

  • • An NFT Marketplace

  • • Built for speed

  • • With optional royalties


How is Blur different from other marketplaces?

  • • Zero marketplace fees

  • • Optional, customizable royalties

  • • You choose how much % royalties you pay to the artist if someone buys your NFT

  • • More royalties you pay = Larger Blur airdrops you receive


What are Care Packages?

Care Packages are Blur's way of airdropping $BLUR tokens to its community.

Care Packages contain varying amounts of $BLUR tokens based on rarity. $BLUR is a governance token that will be used by the community to manage decisions like marketplace fees.


The amount of Care Package you receive from Airdrop 1 is calculated from your NFT trading volume over past 6 months (as of October 2022).


Care Packages from Airdrop 1 can be opened in January 2023.


How to Claim your Care Packages

In order to claim your Care Package Airdrop, you must first list 1 NFT on Blur. The airdrop page can be found here.


The deadline for claiming the 1st Care Package airdrop is November 2nd.


Care Package Airdrop #2

Even though the initial Care Package airdrop has already concluded it doesn't mean the initial $BLUR token distribution is over. A 2nd Airdrop is coming.


The 2nd airdrop will bring a new wave of Care Packages that can also be opened in January.


I view these 2 airdrops as one giant airdrop with 2 phases because the $BLUR from both airdrops will hit the market simultaneously.


Since Airdrop 2 is still up for grabs, next I will explain how you can maximize your 2nd Care Package airdrop.


Maximizing Airdrop 2: What You Can Do

This is a direct quote from Blur's Medium article:


"Airdrop 2 will be much bigger than airdrop 1"


For this reason alone, you should absolutely not be lazy when it comes to maximizing the 2nd airdrop.


So how does one qualify for the 2nd airdrop?


1. LIST NFTs

  • More listings = Bigger airdrop

  • When listing, setting your NFTs at full royalties will earn you a larger airdrop than those who don't


Blur also provided hints (read between the lines) on how to maximize your 2nd airdrop without explicitly stating the formula they're using.

Read this. Study this. Do this.


Don't be lazy, it's literally free money.


Maximizing Luck

Users can increase their chance of pulling Rare & Legendary airdrops by showing their Loyalty to Blur.


But what does "Loyalty" mean? And how is it calculated?


Loyalty means giving Blur the best (lowest) priced listings.


To increase your Loyalty to Blur, it means Blur must have the lowest (or equal) priced listing compared to other marketplaces.


If you list an NFT on Blur but it's listed somewhere else for a lower price, your loyalty score will be lowered.


Paper Ape's Analysis

I don't see Blur being sustainable without eventually adding marketplace fees. Without fees, Blur generates zero revenue.


Since the protocol generates no revenue, it can't reward platform fees to to holders of $BLUR. So as long as Blur has zero fees, the community has no financial incentive to hold $BLUR tokens.


The only utility for $BLUR (so long as there are no fees) is voting power. Governance alone will not be enough for BLUR to keep the token from being dumped on the secondary market. If you look at any other token where governance is the only utility, they are virtually worthless.


Once $BLUR is distributed, token holders will have to decide via governance how much fees the marketplace should take. This will probably take place Q1 2023. My prediction is that the community will copy X2Y2 and go with 0.5% fees to match the current lowest marketplace fee.


It doesn't really matter what Blur chooses to set the fees at, I expect the VCs to prop up $BLUR's price as long as they can so it gives them enough time to cash out their vested tokens.


It seems likely that there will more airdrops (3rd, 4th, 5th...) so I have a suspicion this will be their method for keeping peoples' attention while they wait for their exit.


We'll have to revisit this analysis when the tokenomics are available so I can give more precise numbers like supply, distribution percentages, vesting schedule, etc.


With all that in mind, my current trading strategy is to maximize the first 2 Airdrops and try to exit my positions rather quickly. I will not be buying a single $BLUR token on the secondary market because Blur will continue inflating the token supply with additional airdrops, devaluing the currency.


Good tokenomics that turn $BLUR into a yield generating token can change my mind, but if that does happen I don't think we'll see it right at launch.


In the meantime, it's probably best to take advantage of the zero-fee NFT trading while you can.


I also don't think Blur's features are substantially different from other marketplaces which will be difficult to give it staying power.


If traders choose Blur over OpenSea/LooksRare/Gem/X2Y2/Sudoswap strictly because of the customizable fees, only then do I see the marketplace performing well. Optional royalties are the biggest differentiator Blur has going for it so pretty much everything rides on that one feature.


With all it has going against it, I see Blur having an uphill battle in becoming the next big NFT marketplace.

25 views