Proposal for enhanced Incentives + Blur Points: “Project Uplift”
TL;DR: Enhance Blur’s incentives + points system to reward traders for profitable sales. Resulting in positive price trends & higher revenue for the Blur team.
Overview:
This proposal aims to revamp the incentive structure of the Blur NFT marketplace, fostering a mutually beneficial ecosystem for all stakeholders including Blur, investors, whales, traders, and listed projects. By addressing current challenges and introducing a revised incentive system, the objective is to position Blur as the preferred platform while empowering projects to thrive.
Current Problem:
Currently, the incentive scheme of Blur encourages liquidity and trading volume, which is commendable. However, an unintended consequence arises when traders engage in a cycle of undercutting to accumulate blur points, leading to a downward price spiral. This not only affects traders but also the projects, asset holders, and Blur’s reputation.
Solution and Incentive Refinement:
The solution proposed is straightforward yet impactful: adjust incentives to reward traders for profitable sales. By motivating traders to prioritize profit-oriented trades, even those with modest gains, a positive feedback loop of price appreciation can be established.
This refined incentive structure yields benefits for all parties involved:
- Blur: Upon fee activation, the elevated asset prices result in higher transaction fees, contributing to Blur’s revenue growth.
- Traders: Traders stand to gain both in terms of accumulating Blur points and realizing improved trading profits.
- Asset Holders: The enhanced value of their assets translates to higher returns, bolstering their investments.
- Projects: Increased trading volume naturally drives up the floor price of projects, fostering a healthier market environment.
Furthermore, the proposed shift in incentives focuses on cultivating a “Price Go Up” mindset. Points would be awarded exclusively for bids/buys and listings/sales that surpass the preceding sale price. This approach encourages a consistent increase in fee revenue, replacing the current downward price pressure with an upward trend.
Conclusion:
The “Project Uplift” proposal seeks to enhance the NFT marketplace by refining Blur’s incentive structure. By introducing a small change, the negative price spiral can be replaced with a positive trajectory. This transformation benefits all stakeholders by fostering value growth for projects, asset holders, traders, and Blur itself. By embracing this proposal, Blur can solidify its stature as a premier NFT platform while nurturing a sustainable and thriving ecosystem.
help the market instead of blurring it away. WAGMI